HKS Affiliated Authors


McKinnon's Claim that RMB-$ Appreciation Would Not Reduce Trade Imbalances. Jeffrey Frankel, March 10, 2013, Opinion. "The International Economy magazine (Winter 2013) asks 16 authorities, “Can Changes in Exchange Rate Valuations Affect Trade Imbalances?" It is referring to the claim in a recent book by Stanford economist Ron McKinnon that pressure on China to let the renminbi appreciate against the dollar is fundamentally misconceived because such a movement in the exchange rate would not reduce China’s trade surplus nor American’s trade deficit. This is part of an old debate that pre-dates the rise of the China trade problem..." Link verified April 4, 2014