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Exchange Rate Arrangements in Asia: Do They Matter?

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Abstract

We examine the difference that various exchange rate arrangements can make toward stabilizing effective nominal and real exchange rates, with special attention to the Asian experience. It concludes that formal basket pegging is unlikely to be sustainable but can easily mimicked with country-specific pegs. Some practical solutions are offered to stabilize regional exchange rates.

Suggested Citation

  • Charles Wyplosz, 2007. "Exchange Rate Arrangements in Asia: Do They Matter?," IHEID Working Papers 04-2007, Economics Section, The Graduate Institute of International Studies, revised 12 Aug 2004.
    • Handle: RePEc:gii:giihei:heiwp04-2007
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    File URL: http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIWP04-2007.pdf
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    References listed on IDEAS

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    1. Jeffrey A. Frankel, 2003. "Experience of and Lessons from Exchange Rate Regime in Emerging Economies," NBER Working Papers 10032, National Bureau of Economic Research, Inc.
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    3. Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 1-48.
    4. Bayoumi, Tamim & Eichengreen, Barry, 1998. "Exchange rate volatility and intervention: implications of the theory of optimum currency areas," Journal of International Economics, Elsevier, vol. 45(2), pages 191-209, August.
    5. Charles WYPLOSZ, 2001. "How Risky Is Financial Liberalization In The Developing Countries?," G-24 Discussion Papers 14, United Nations Conference on Trade and Development.
    6. Levy-Yeyati, Eduardo & Sturzenegger, Federico, 2005. "Classifying exchange rate regimes: Deeds vs. words," European Economic Review, Elsevier, vol. 49(6), pages 1603-1635, August.
    7. Ito, Takatoshi & Ogawa, Eiji & Sasaki, Yuri Nagataki, 1998. "How Did the Dollar Peg Fail in Asia?," Journal of the Japanese and International Economies, Elsevier, vol. 12(4), pages 256-304, December.
    8. repec:dau:papers:123456789/12492 is not listed on IDEAS
    9. Graciela L. Kaminsky, 1998. "Currency and banking crises: the early warnings of distress," International Finance Discussion Papers 629, Board of Governors of the Federal Reserve System (U.S.).
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    Cited by:

    1. Charles Wyplosz, 2007. "Is East Asia Safe from Financial Crises?," IHEID Working Papers 02-2007, Economics Section, The Graduate Institute of International Studies.

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    More about this item

    Keywords

    International Economics; Exchange Rates; Policy coordination; Foreign exchange reserves;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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