Suppose that the Chinese rate of inflation is 6%, and the US rate of inflation is 1%.

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Suppose that the Chinese rate of inflation is 6%, and the US rate of inflation is 1%. If Chinese yuan is pegged to US dollars, what would be the
magnitude of the real appreciation of CNY relative to USD?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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Posted Date: Apr 23, 2024 09:06 AM

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Suppose that the Chinese rate of inflation is 6%, and the US rate of inflation is 1%.

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To calculate the real appreciation of CNY relative to USD you need to adjust for the difference ... View the full answer

International Financial Management

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