The world bank's revaluation of global pricing has raised questions about the real situation of the world economy. Yesterday, many publications used the new data released by the bank to declare that the United States will lose its title of the world's largest economic power for a century in the next year.

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Today, Pedersen Institute for International Economics economist Martin Kessler (Martin Kessler) and Arvind Saboramania (Arvind Subramanian) use these data to conclude that although the RMB has been underestimated in the past decades, the present situation is different from P to Peterson.

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"P," the two economists published, said: "(World Bank) this estimate may be of historic significance.

The end of China's "mercantilism" may be at hand, which will make the rest of the world breathe a sigh of relief.

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< p > > a href= "//m.pmae.cn/news/index_c.asp" > World Bank < /a > using the method of purchasing power parity (purchasing power parity) to reassess the scale of the major economies of the world. This is an equivalent coefficient between the currencies calculated according to the different a href= "//m.pmae.cn/news/index_c.asp" and the price level < < >, aiming to make a reasonable comparison of the gross domestic product of each country.

Usually, this comparison shows that developing countries are actually not as poor as they seem.

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Kessler and Sabra Magnin made use of the new "purchasing power parity" method to estimate that the growth rate of China's per capita GDP from 2011 to March 2014 was 13 percentage points higher than that of the United States. After pformation, this means that the RMB should appreciate by 3.2% or so.

In contrast, the real appreciation of the renminbi has reached 7% over the same period.

That is to say, during this period, the appreciation rate of RMB has been too fast, thus making up for the gap that the RMB appreciation rate has not been fast enough at some time.

The two concluded accordingly: "therefore, the RMB in 2014 has reached the fair value."

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< p > however, valuing a currency is not easy.

Different economists will use different methods and come to different conclusions, especially when the currency is not appreciating or depreciating.

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< p > however, the conclusions of the two economists from the Pedersen Institute of international economics are likely to have an impact on the positions of the two countries.

Over the years, the US Congress has always treated the issue of RMB as a political issue; before that, the US Congress aimed at the Japanese yen.

Conversely, developing countries have accused the US of lowering the value of the US dollar through the Fed's bond buying program.

But after the conclusion of Kessler and Sabra Magnin, the Chinese government will justifiably declare that its monetary policy is reasonable, and the US Congress is best to turn a blind eye to the result.

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< p > on the other hand, Alan Tonelson, an economist at the US Business and Industry Council (Alan Tonelson), opposed the calculations of Kessler and Sabra Magnin, which often accuses the Chinese government of making the US exporters lose the advantage of exchange rate.

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The differences and disputes between these two viewpoints may not be solved in the near future, or even P will never be able to reach agreement.

This summer, the a href= "//m.pmae.cn/news/index_c.asp" International Monetary Fund /a (IMF) will also publish its valuation report on the value of the renminbi. Last year, the group said that the value of the renminbi was "undervalued", that is, it was undervalued 5% to 10% left and right.

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