Proposed Strategy For A Regional Exchange Rate Arrangement In Post Crisis East Asia

Author : Masahiro Kawai
Publisher : World Bank Publications
ISBN 13 :
Total Pages : 52 pages
Book Rating : 4./5 ( download)

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Download or read book Proposed Strategy for a Regional Exchange Rate Arrangement in Post-crisis East Asia written by Masahiro Kawai and published by World Bank Publications. This book was released on 2000 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: A coordinated action by East Asian countries to stabilize their currencies against a common basket of major currencies (broadly representative of their average structure of trade and foreign direct investment) would help stabilize both intraregional exchange rates and effective exchange rates, in a way consistent with the medium-term objective of promoting trade investment and growth in the region.

Author : Masahiro Kawai
Publisher :
ISBN 13 :
Total Pages : 47 pages
Book Rating : 4.35/5 ( download)

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Download or read book Proposed Strategy for a Regional Exchange Rate Arrangement in Post-Crisis East Asia written by Masahiro Kawai and published by . This book was released on 2016 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: A coordinated action by East Asian countries to stabilize their currencies against a common basket of major currencies (broadly representative of their average structure of trade and foreign direct investment) would help stabilize both intra-regional exchange rates and effective exchange rates - in a way consistent with the medium-term objective of promoting trade, investment, and growth in the region. After discussing major conceptual and empirical issues relevant to the exchange rate policies of East Asian countries, Kawai and Takagi propose a regional exchange rate arrangement designed to promote intraregional exchange rate stability and regional economic growth. They argue that:For developing countries, exchange rate volatility tends to significantly hurt trade and investment, making it inadvisable to adopt a system of freely floating exchange rates.Given the high share of intraregional trade and the similarity of trade composition in East Asia, exchange rate policy should be directed toward maintaining intraregional exchange rate stability, to promote trade, investment, and economic growth.The current policy of maintaining exchange rate stability against the U.S. dollar as an informal, uncoordinated mechanism for ensuring intraregional exchange rate stability is suboptimal. A pragmatic policy option - conducive to a more robust framework for cooperation in monetary and exchange rate policy - would be a coordinated action to shift the target of nominal exchange rate stability to a basket of tripolar currencies (the U.S. dollar, the Japanese yen, and the euro). This alternative would better reflect the region's diverse structure of trade and foreign direct investment.The authors envision no rigid peg. Instead, at least initially, each country could choose its own formal exchange rate arrangement - be it a currency board, a crawling peg, or a basket peg with wide margins. At times of crisis, the peg might be temporarily suspended, subject to the rule that the exchange rate would be restored to the original level as soon as practical. Only in extreme circumstances would the level be adjusted to reflect new equilibrium conditions.This paper - a product of the Office of the Chief Economist, East Asia and Pacific Region - is part of a larger effort in the region to study financial market development, capital flows, and exchange rate arrangements in East Asia.

Author : Masahiro Kawai
Publisher : OUP Oxford
ISBN 13 : 0191023582
Total Pages : 240 pages
Book Rating : 4.83/5 ( download)

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Download or read book Monetary and Financial Cooperation in East Asia written by Masahiro Kawai and published by OUP Oxford. This book was released on 2015-04-02 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global financial crisis and the Eurozone crisis have led to a profound rethink in East Asia about the international monetary system and regional monetary and financial integration. After the East Asian crisis of 1997, deeper regional cooperation was seen as the way to avoid reliance on the IMF and the rest of the world. Steps were taken, but they were limited because of disagreements reflecting regional rivalries. Still, integration into the global financial system and Europe's regional process were seen as objectives to be adapted to East Asia, as detailed in an overview chapter. The crises have shaken this strategy but also revealed the pre-existing deep disagreements. This book presents contributions by scholars from different countries. Each one was invited to describe the vision of their policymakers. The traidtional rivalry between China and Japan, the region's largest economies, reveals Chinese confidence into its rising power and Japanese growing doubts about its ability to weigh on the debate. For opposite reasons, both display a declining interest into regional cooperation. Korea and the ASEAN countries do not wish to choose between the regional powers but remain attached to regional cooperation and integration. They look for pragmatic solutions that recognize the value-chain characteristic of trade. Additional contributions by US and European scholars provide evaluations of the global and Eurozone crises and of their relevance for East Asian integration.

Author : Woosik Moon
Publisher : Edward Elgar Publishing
ISBN 13 : 1781009155
Total Pages : 241 pages
Book Rating : 4.54/5 ( download)

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Download or read book Asian Monetary Integration written by Woosik Moon and published by Edward Elgar Publishing. This book was released on 2012 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: Numerous ideas for monetary and financial cooperation in East Asia have been proposed both within and outside the region since the financial crisis in Asia. Despite this strong level of interest, however, there are few studies that aim to comprehensively address the issue from multiple perspectives. This insightful book redresses the balance and illustrates how East Asian countries plan to take advantage of their rising economic power in rearranging the new international monetary and financial order in the post-crisis era. The expert contributors examine the history, conditions and current efforts towards monetary integration in Asia and explore possible future paths, highlighting the roles and perspectives of East Asian countries in the integration process. They consider how East Asian economies could establish their own zone of monetary stability, and show that monetary stability cannot be separately addressed from the issues of economic growth and solidarity. Without economic growth and solidarity, there would be no purpose in pursuing monetary integration, therefore all three challenges must be simultaneously addressed. Against this backdrop, the book tackles the issues of East Asian monetary integration underpinned by the broad framework of economic growth and solidarity. Scholars of economics, monetary integration, Asian studies and regionalism will find this book to be an illuminating and thought-provoking read.

Author : Mr.Taimur Baig
Publisher : INTERNATIONAL MONETARY FUND
ISBN 13 : 9781451857092
Total Pages : 0 pages
Book Rating : 4.98/5 ( download)

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Download or read book Characterizing Exchange Rate Regimes in Post-Crisis East Asia written by Mr.Taimur Baig and published by INTERNATIONAL MONETARY FUND. This book was released on 2001-10-01 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the behavior of the exchange rates of selected emerging market East Asian economies in the aftermath of the Asian crisis. The results suggest that movements in the Asia-5 currencies (Indonesia, Korea, Malaysia, Philippines, and Thailand) were significantly influenced by the U.S. dollar's day-to-day movements before the crisis, and have indeed continued to do so post-crisis. However, comparisons with a range of other currencies suggest that this is a fairly common trait across various regimes. Moreover, results from the post-crisis data do not support the view that the Asia-5 currencies presently have the same characteristics as they did before the crisis.

Author : Yong-hyŏp O
Publisher : 한국방송출판
ISBN 13 :
Total Pages : 292 pages
Book Rating : 4.56/5 ( download)

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Download or read book Monetary and Exchange Rate Arrangement in East Asia written by Yong-hyŏp O and published by 한국방송출판. This book was released on 2004 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : H. Hirakawa
Publisher : Springer
ISBN 13 :
Total Pages : 146 pages
Book Rating : 4.73/5 ( download)

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Download or read book Co-design for a New East Asia After the Crisis written by H. Hirakawa and published by Springer. This book was released on 2004-01-19 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: Until the currency crisis of 1997, East Asia was hailed around the world as a model of economic growth and development. However, when the crisis struck, East Asian countries found themselves struggling without the regional cooperation frameworks that had been established by the other major economic regions of the world. The establishment of a strong East Asian regional cooperation framework has become a vital policy challenge in the post-crisis period. In February 2002 a group of leading Asian economic policy experts came together to discuss the future of East Asian regionalism at the "Co-design for a New East Asia" symposium hosted by the Economic Research Center of Nagoya University. This book brings together the key papers from that symposium and strongly argues the case for an East Asian regionalism while addressing the potential barriers to such a framework. The book is of interest to everyone concerned about the economic future of East Asia in a post-crisis globalized economy.

Author : Gordon De Brouwer
Publisher : Taylor & Francis US
ISBN 13 : 0415405890
Total Pages : 488 pages
Book Rating : 4.98/5 ( download)

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Download or read book Exchange Rate Regimes in East Asia written by Gordon De Brouwer and published by Taylor & Francis US. This book was released on 2004-08 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a deepening debate in East Asia about the prospects for common exchange rate arrangements, even including the formation of a common currency in the longer term. This raises a complex set of issues and this volume provides a detailed yet comprehensive examination of key issues in the debate. It looks, for example, at the nature and extent of linkages in East Asia, in terms of trade and foreign investment, finance, labour, and consumption, investment and output. It examines how the exchange rate affects various aspects of economies. And it critically analyzes various proposals for currency regimes for the region, including floating exchange rates, basket pegs, and currency union.

Author : Masahiro Kawai
Publisher : Edward Elgar Publishing
ISBN 13 : 0857933353
Total Pages : 321 pages
Book Rating : 4.55/5 ( download)

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Download or read book Monetary and Currency Policy Management in Asia written by Masahiro Kawai and published by Edward Elgar Publishing. This book was released on 2012-01-01 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: Asian economies strengthened their monetary and currency management after the Asian financial crisis of 19971998, and came through the global financial crisis of 20072009 relatively well. Nevertheless, the recent global crisis has presented new challenges. This book develops recommendations for monetary and currency policy in Asian economies aimed at promoting macroeconomic and financial stability in an environment of global economic shocks and volatile capital flows. Monetary and Currency Policy Management in Asia draws lessons from crises and makes concrete macroeconomic policy recommendations aimed at minimizing the impacts of an economic and financial downturn, and setting the stage for an early return to sustainable growth. The focus is on short-term measures related to the cycle. The three main areas addressed are: monetary policy measures, both conventional and unconventional, to achieve both macroeconomic and financial stability; exchange rate policy and foreign exchange reserve management, including the potential for regional cooperation to stabilize currency movements; and ways to ease the constraints on policy resulting from the so-called 'impossible trinity' of fixed exchange rates, open capital accounts and independent monetary policy. This is one of the first books since the global financial crisis to specifically and comprehensively address the implications of the crisis for monetary and currency policy in emerging market economies, especially in Asia. Presenting a broad menu of policy options for financial reform and regulation, the book will be of great interest to finance experts and policymakers in the region as well as academics and researchers of financial and Asian economics as well as economic development.

Author : Masahiro Kawai
Publisher :
ISBN 13 :
Total Pages : 66 pages
Book Rating : 4.52/5 ( download)

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Download or read book Implications of the Currency Crisis for Exchange Rate Arrangements in Emerging East Asia written by Masahiro Kawai and published by . This book was released on 2016 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: More effort should be made to develop a framework for international monetary coordination, not only to maintain stable exchange rates among the U.S. dollar, the Japanese yen, and the euro, but to minimize the risk of currency and financial crises in emerging economies in East Asia and elsewhere.Kawai and Akiyama examine the implications of the East Asian currency crisis for exchange rate arrangements in the region's emerging market economies. They focus on the roles of the U.S. dollar, the Japanese yen, and the euro in the emerging East Asian economies' exchange rate policies. They claim that these economies are particularly susceptible to large exchange rate fluctuations because they have been pursuing financial deregulation, opening markets, and liberalizing capital accounts, and because they face increased risk of sudden capital flow reversals, with attendant instability in their financial system and foreign exchange market.Kawai and Akiyama find that the dollar's role as the dominant anchor currency in East Asia was reduced during the recent currency crisis but has become prominent again since late 1998. It is too early for conclusions, but the economies seem likely to maintain more flexible exchange rate arrangements, at least officially.At the same time, these economies presumably will continue to prefer to maintain exchange rate stability without fixed rate commitments. They are better off choosing a balanced currency basket system in which the yen and the euro play a more important role than before.The ASEAN countries have a special incentive to avoid harmful fluctuations in exchange rates within the region, which could suddenly alter their international price competitiveness and make prospective free trade agreements unsustainable. So they may stabilize their exchange rates against similar currency baskets, to ensure intraregional exchange rate stability.This paper - a product of the Office of the Chief Economist, East Asia and Pacific Region - is part of a larger effort in the region to study financial market development, capital flows, and exchange rate arrangements in East Asia. The authors may be contacted at [email protected] or [email protected].