Is China’s Currency RMB undervalued?

This research attempts to provide some input into the debate of the undervaluation of Chinese currency. For this, it adopts two competing approaches--the Neoclassical and Post Keynesian to view their various understandings of conceptualizations and associated computations of overvaluation and undervaluation of currencies. These different theoretical perceptions are then used to assess whether the RMB is undervalued or not. It is found that from the Neoclassical perspective it should be cautious to say that the RMB is undervalued as it is sensitive to the changing assumptions, while from the Post Keynesian viewpoint it could be argued that the RMB is not undervalued.