Sino-US think-tank exchange rate on the eve of G20 finance ministers meeting

Mense April 23, Washington will hold the 20-nation group (G20) finance ministers and central bank governors meeting, the renminbi exchange rate issue again warming.　　Yesterday, the China International Economic Exchange Center (CCIEE), a results conference on the "new semi-official semi-private think tank" voice: The U.S. intellectual Peterson International Economic Research Institute of the RMB exchange rate model has five major flaws. Does the renminbi really need to appreciate? CCIEE yesterday reported that the yuan appreciation of the reasons for the recent insufficient.　　CCIEE Executive vice president and Academic Committee director Xinli said that a revaluation of the renminbi could not solve the US trade deficit problem, not only hurt the interests of U.S. consumers and U.S. enterprises in China, but also against the world economic recovery.　　The recent debate over the appreciation of the renminbi was sparked by a statement from the Peterson International Economic Research Institute that the renminbi was undervalued by 41% against the dollar. At yesterday's press conference, CCIEE research researcher Zhang Indicative: "The result of such a rough estimate of the renminbi's exchange rate is that it is very short of economic analysis to put pressure on the renminbi by American lawmakers, even as big-name economists like Nobel laureates." According to Zhang, the basic ideas of the Peterson Institute for International Economics include the change in effective exchange rates, coupled with changes in the trade prices of both exports after the exchange rate movement, which in turn creates a country where the exchange rate is appreciating, exports will change, and exchange rate movements are exported through price, with a elasticity　　will result in a change in the current account balance, a change in the share of GDP. Zhang pointed out the five major problems of the model: the balance of current account account as the sole objective of exchange rate adjustment, and the lack of basis for the target setting of the countries ' current accounts;　　Unreasonable assumptions that do not affect the amount of imports; the elasticity of export prices is stylized and simplistic, and is related only to the proportion of exports. Zhang stressed that the renminbi exchange rate did not significantly deviate from a reasonable level of equilibrium. "It should be said that the current level of economic development in China is generally consistent." The renminbi does not need to rise. "At present, the market has been discussing whether the renminbi is going to appreciate, behind this issue is the long-term capital account of the current surplus is necessary." I think that this is unnecessary. Liu Ke, deputy director of the CCIEE Academic Committee and former deputy Governor of the National Development Bank, said, "a small sustained appreciation of the exchange rate is a way to solve this problem, but not the main method, the state can adjust the export tax rebate policy to solve." The five major problems of "The Peterson Model" The current account balance is the sole objective of the exchange rate adjustment, and there is a lack of basis for the target setting of the country's current accounts;The unreasonable assumption that the exchange rate fluctuation affects the export value only, does not affect the import amount, and the elasticity of export price is programmed and simplified, which is only related to the export ratio.