EXTENT OF EXCHANGE RATE COORDINATION IN ASIA

Abhijit Sen Gupta

The Singapore Economic Review (SER), 2015, vol. 60, issue 02, 1-25

Abstract: High level of intra-regional trade and negative spillovers from competitive devaluation make exchange rate coordination extremely desirable in Asia. Employing a hypothetical Asian Currency Unit we evaluate the degree of coordination among Asian currencies. Traditional empirical tests yield little evidence of coordination among real and nominal exchange rates. However, introducing endogenously determined structural breaks to account for changes in exchange rate regimes provides more mixed evidence. While there is still little evidence for coordination in nominal terms, some degree of coordination among real rates emerges. The limited evidence for exchange rate coordination can be explained by the diverse exchange rate regimes prevailing in these economies, signaling differences in policy objectives.

Keywords: Asian currency unit; currency coordination; structural breaks; exchange rate regimes; panel unit root; F33; F36; N15; E58 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590815500137
Access to full text is restricted to subscribers

Related works:
Working Paper: Extent of Exchange Rate Coordination in Asia (2015)
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:wsi:serxxx:v:60:y:2015:i:02:n:s0217590815500137

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590815500137

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().