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De facto exchange rate regimes in post-crisis Asia

Author

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  • Takuji Kinkyo

    (Graduate School of Economics, Kobe University)

Abstract

This paper empirically examines the behaviour of exchange rates in order to identify de facto exchange rate regimes in post-crisis Asian countries. We use the multivariate GARCH model to estimate the conditional correlation among the value of currencies, which include the currencies of Thailand, Korea, Indonesia, and China. The results indicate that the degree of flexibility has increased substantially in the post-crisis exchange rate regimes in those economies, except for China. Even after the introduction of new system in 2005, the renminbi continues to be effectively pegged to the dollar.

Suggested Citation

  • Takuji Kinkyo, 2012. "De facto exchange rate regimes in post-crisis Asia," Economics Bulletin, AccessEcon, vol. 32(3), pages 2155-2165.
    • Handle: RePEc:ebl:ecbull:eb-11-00859
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    exchange rate regimes; Asian crisis; multivariate GARCH;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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