EconPapers    
Economics at your fingertips  
 

A regional trend towards a basket peg system

Iwan Azis () and Nattapong Puttanapong ()

International Journal of Trade and Global Markets, 2008, vol. 1, issue 2, 144-162

Abstract: Exchange rate volatility can be detrimental to growth and stability. For East Asian countries, a common basket system can be a way to reduce such volatility. By evaluating the weights of the dollar, the yen, and the euro in individual country's exchange rate, the paper shows that post-crisis fluctuations of regional currencies are no longer determined by the US dollar alone. Should the region decide to adopt a common basket, therefore, it is consistent with such a trend. The regional exchange rates also have not uniformly functioned as a stabiliser, suggesting there is a room for a basket peg system.

Keywords: exchange rate volatility; macroeconomic stability; basket peg system; symmetric shock; East Asia; regional currencies; regional exchange rates; common basket. (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.inderscience.com/link.php?id=18444 (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:ids:ijtrgm:v:1:y:2008:i:2:p:144-162

Access Statistics for this article

More articles in International Journal of Trade and Global Markets from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().

 
Page updated 2022-06-04
Handle: RePEc:ids:ijtrgm:v:1:y:2008:i:2:p:144-162