This slide show provides details about the relationship between China's anti-inflation policy and the likely path of the yuan-dollar exchange rate over the coming months.
Keywords: China, inflation, exchange rates, yuan, real exchange rate, nominal exchange rate
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I originally intended the slide shows mainly for classroom use. If you teach economics at any level, I invite you to cut and paste them into your live lectures, incorporate them into your on-line courses, assign them to your students as readings, or use them in any way that works for you. If you like the slides, I invite you also to consider adopting my own textbook from BVT Publishing.
For general readers of my blog, the slide shows offer a way to explore a topic in greater depth than is possible in the basic post, through added data, graphs, pictures, and background theory and concepts. I hope all readers enjoy them.
The slide shows are published under Creative Commons license Attribution--Share Alike 3.0. That means you can share, transmit, distribute, or adapt the slides for any purpose, provided you cite Ed Dolan's Econ Blog as the source, and your resulting publication is not more restrictively licensed than the original.
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The differential between the real inflation rates will decrease as US inflation rates increase in real terms.
ReplyDeleteThose of us working in China are looking at significant increases in export prices of manufactured goods in 2011 driven by the exchange rate and 25%+ increases in wages. This in turn will increase prices of many US consumer goods (non food) in Q2.
For the first time in 30 years prices in Walmart, Target, etc..
Energy costs are also rising.