The exchange rate regime in Asia: From crisis to crisis
Ila Patnaik,
Ajay Shah,
Anmol Sethy and
Vimal Balasubramaniam ()
Additional contact information
Anmol Sethy: National Institute of Public Finance and Policy
Working Papers from National Institute of Public Finance and Policy
Abstract:
Prior to the Asian financial crisis, most Asian exchange rates were de facto pegged to the US Dollar. In the crisis, many economies experienced a brief period of extreme flexibility. A `fear of floating' gave reduced flexibility when the crisis subsided, but flexibility after the crisis was greater than that seen prior to the crisis. Contrary to the idea of a durable Bretton Woods II arrangement, Asia then went on to slowly raise flexibility and reduce the role for the US Dollar. When the period from April 2008 to December 2009 is compared against periods of high in flexibility, from January 1991 to November 1991 and October 1995 to March 1997, the increase in flexibility is economically and statistically significant. This paper proposes a new measure of dollar pegging, the "Bretton Woods II score". We find that by this measure Asia has been slowly moving away from a Bretton Woods II arrangement.
Keywords: Exchange rate regime; Asia; Bretton Woods II hypothesis (search for similar items in EconPapers)
JEL-codes: F31 F33 (search for similar items in EconPapers)
Pages: 27
Date: 2010-05
New Economics Papers: this item is included in nep-cba, nep-ifn, nep-mon and nep-sea
Note: Working Paper 69, 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
http://www.nipfp.org.in/working_paper/wp_2010_69.pdf (application/pdf)
Related works:
Journal Article: The exchange rate regime in Asia: From crisis to crisis (2011) 
Working Paper: The exchange rate regime in Asia: From Crisis to Crisis (2010) 
Working Paper: The Exchange Rate Regime in Asia: From Crisis to Crisis (2010) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:npf:wpaper:10/69
Access Statistics for this paper
More papers in Working Papers from National Institute of Public Finance and Policy
Bibliographic data for series maintained by S.Siva Chidambaram ( this e-mail address is bad, please contact ).