Exchange Rate Policy and Global Supply Chains: The Case of the Chinese Renminbi and Global Soybean and Soybean Product Markets

abstract

• 2017. Oxford University Press on behalf of the Agricultural and Applied Economics Association. A policy debate on widespread currency manipulation has generated economic analyses to inform policymakers regarding both the extent and impact of the problem. Such analyses typically focus on commodity trade and price impacts while ignoring potentially important supply chain linkages. Using Chinese exchange rate policy and global soybean and soybean product markets as an example, this paper illustrates that substantial measurement errors are possible if supply chain linkages are ignored in exchange rate policy analyses. As a consequence, policy responses to foreign currency manipulation informed by such analyses may be misguided or imprecise at best.

authors

• Williams, Gary

published proceedings

• APPLIED ECONOMIC PERSPECTIVES AND POLICY

author list (cited authors)

• Williams, G. W., & Luo, J. i.

citation count

• 1

complete list of authors

• Williams, Gary W||Luo, Ji

publication date

• March 2017

publisher

• Wiley  Publisher

published in

• Applied Economic Perspectives and Policy  Journal

keywords

• China
• Exchange Rate
• Measurement Error
• Renminbi
• Soybeans
• Supply Chain

Digital Object Identifier (DOI)

• 10.1093/aepp/ppv030

start page

• 177

end page

• 198

volume

• 39

issue

• 1

URL

• http%3A%2F%2Fdx.doi.org%2F10.1093%2Faepp%2Fppv030