China’s Exchange Rate Policy and Its Trade Balance with the US外文翻译.docVIP

英文原文： China’s Exchange Rate Policy and Its Trade Balance with the US Abstract This paper investigates the claim that China’s exchange rate policy causes the US trade deficit with China to grow. Although there is no evidence that changes in the exchange rate cause the trade deficit to rise in the short run, a statistically significant long-run relationship between the RMB/dollar exchange rate and the US trade deficit with China is detected. As the value of the dollar declines (or RMB appreciates), ceteris paribus, so does the trade deficit. Hence, there is a need for China to adjust its exchang