TY - JOUR
T1 - Determining the RMB Exchange Regime
AU - Feng, Xiaobing
AU - Alon, Ilan
PY - 2011
Y1 - 2011
N2 - Although China has claimed since 2005 that it will move towards a more market-oriented system of managing its foreign exchange, it has remained, in part, a managed economic system. This chapter examines the relative importance of fundamentalist, chartist and currency arrangements in determining the RMB exchange regime using both traditional linear and non-linear artificial intelligence models. We find that the emphasis on the US dollar as a reference currency has declined. Fundamentalist forces are becoming strong determinants of the currency exchange. The genetic programming approach is among the best performing in minimizing forecasting error.
AB - Although China has claimed since 2005 that it will move towards a more market-oriented system of managing its foreign exchange, it has remained, in part, a managed economic system. This chapter examines the relative importance of fundamentalist, chartist and currency arrangements in determining the RMB exchange regime using both traditional linear and non-linear artificial intelligence models. We find that the emphasis on the US dollar as a reference currency has declined. Fundamentalist forces are becoming strong determinants of the currency exchange. The genetic programming approach is among the best performing in minimizing forecasting error.
UR - http://www.scopus.com/inward/record.url?scp=84856994882&partnerID=8YFLogxK
U2 - 10.1108/S1569-3759(2011)0000093022
DO - 10.1108/S1569-3759(2011)0000093022
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AN - SCOPUS:84856994882
SN - 1569-3759
VL - 93
SP - 611
EP - 624
JO - Contemporary Studies in Economic and Financial Analysis
JF - Contemporary Studies in Economic and Financial Analysis
ER -