International Capital Markets, Macroeconomic Stability, and Exchange Rate Stabilization in the CIS and East Asia

Gunther Schnabl ()

International Finance from EconWPA

Abstract: Although most CIS and East Asian countries are de jure classified as free floaters, they de facto pursue (tight) dollar pegs. This paper emphasizes dollar denomination of short-term and long-term payment flows as reasons for exchange rate stabilization. Based on the analysis of ifcompetitive depreciationsll and incompetitive appreciationsll among the CIS and East Asian currencies it is argued that the adherence to a common external anchor currency enhances macroeconomic stability. Finally, the potential of euro and ruble (CIS) as well as yen and yuan (East Asia) to challenge the dollar as anchor currencies in the respective regions is

Keywords: CIS; East Asia; Informal Dollar Standard; Liability Dollarization; Asset Dollarization; Competitive Depreciation; Competitive Appreciation; Exchange Rate Systems (search for similar items in EconPapers)
JEL-codes: F31 F32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fin, nep-ifn and nep-sea
Date: 2004-10-29, Revised 2005-03-01
Note: Type of Document - pdf; pages: 29
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpif:0410009

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