Purchasing Power Parity and Equilibrium Exchange Rate of RMB
综述了用购买力平价衡量人民币均衡汇率的研究，指出常见误用，并认为当前人民币汇率并未严重低估。
Purchasing Power Parity(PPP) is one of the most widely used methods to measure the equilibrium exchange rate of a currency.Employing the method,some studies have arrived at the highest estimations on the level of RMB undervaluation.This paper provides a comprehensive review on the existing literature especially recent discussions,pointing out several misuses and mistakes that commonly appear in related studies.It s proposed in this paper that:(1) compared to other approaches such as FEER,extended PPP method is more proper in measuring RMB's equilibrium exchange rate;(2) World Bank's revision on China's PPP in 2005 has significantly reduced estimation on RMB undervaluation level;and the view that new PPP for China was underestimated is not convincingly held;(3) The current RMB exchange rate is not seriously undervalued.