The dilemma of exchange rate arrangements in East Asia

Eiji Ogawa and Doo Yong Yang ()

Japan and the World Economy, 2008, vol. 20, issue 2, pages 217-235

Abstract: This paper analyzes exchange rate flexibility in East Asia and explores what has changed since the Asian financial crisis. Our focus is not on the choice of an appropriate exchange rate regime in East Asia, but rather on exchange rate flexibility and management in the region. We find that exchange rate management in East Asia differs based on the country and the time period. We identify major concerns about current exchange rate arrangements in East Asia, including asymmetric responses to external shocks, competitive devaluation, and the dilemma of choosing between asset dollarization and liability dollarization. The paper concludes with some policy implications for an exchange rate arrangement in East Asia.

Date: 2008
View citations in EconPapers

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6VF1 ... cfd121729ef04067cba6
Full text for ScienceDirect subscribers only

Related works:
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: http://EconPapers.repec.org/RePEc:eee:japwor:v:20:y:2008:i:2:p:217-235

Access Statistics for this article

Japan and the World Economy is edited by Robert Dekle and Yasushi Hamao

More articles in Japan and the World Economy from Elsevier
Series data maintained by Heidi Boesdal ().