Title

The External Impact of China’s Exchange Rate Policy: Evidence from Firm Level Data

Barry Eichengreen and Hui Tong

The External Impact of China’s Exchange Rate Policy: Evidence from Firm Level Data

The authors examine the impact of renminbi revaluation on foreign firm valuations, considering two surprise announcements of changes in China’s exchange rate policy in 2005 and 2010 and employing data on some 6,000 firms in forty-four economies. Stock returns rise with renminbi revaluation...
Topics: 
Economy