Economics Seminar (2020-06)

Topic: The Two-Pillar Policy for the RMB

Speaker: Vivian Zhanwei Yue, Emory University

Time: May 22, Friday. 9:00a.m. -10:30a.m.

Location: Microsoft Teams Online Conference Room

Abstract:

We document stylized facts about China.s recent exchange rate policy for its currency, the Renminbi (RMB). Our empirical findings suggest that a .two-pillar policy is in place, aiming to balance RMB index stability and exchange rate flexibility. Using derivatives data and a reduced-form no-arbitrage model, we assess financial markets views about the current exchange rate policy. Based on these empirical results, we develop a flexible-price monetary model for the RMB to evaluate the optimality of the two-pillar policy.

Introduction:

Prof. Yue is an Associate Professor of Economics, Emory University. More information: //www.vivianyue.com.

Your participation is warmly welcomed.