Assessing Co-ordinated Asian Exchange Rate Regimes

Raj Aggarwal and Cal B. Muckley
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Cal B. Muckley: Smurfit Business School, University College Dublin

No 200842, Working Papers from Geary Institute, University College Dublin

Abstract: This study assesses alternative Asian exchange rate regimes and finds short- and long-run currency dynamics more conducive to the possibility of introducing a common peg based on a basket of the European euro, the United States dollar and the Japanese yen than the alternative of re-introducing a United States dollar peg exchange rate regime. Exchange rate systems of 3- 4- and 5- Asian currencies are examined and the dynamics in a set of 4 European currencies prior to the introduction of the Euro provides benchmark evidence. The evidence for an Asian basket peg regime is strengthened when, unlike in prior studies, the long-run parameters are estimated while accounting for generalised autoregressive conditional heteroscedasticity effects.

Keywords: Exchange Rate Regimes; Asia; Currency Pegs; Basket Exchange Rates (search for similar items in EconPapers)
JEL-codes: F02 F31 F33 F42 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2010-04-13
New Economics Papers: this item is included in nep-ifn, nep-mon and nep-sea
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ucd:wpaper:200842

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