EconPapers    
Economics at your fingertips  
 

Experiences of Asian Countries with Various Exchange Rate Policies

Bijan B. Aghevli

A chapter in Exchange Rate Rules, 1981, pp 298-323 from Palgrave Macmillan

Abstract: Abstract This paper considers the experience of eight Asian countries (India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand)1 with various exchange rate policies, during the period following the generalised floating of the major currencies in 1973. During the last decade considerable theoretical and empirical research has been done in the area of price and exchange rate stability and the effectiveness of macroeconomic policy under a floating system.2 Most of this research, however, has been in the context of the industrial countries and relatively little had been done to adapt it to the case of developing countries.3 The purpose of this paper is to analyse the impact of the exchange rate and monetary policies of various Asian countries on their domestic inflation rates and balance of payments positions. As a first step, the actual experience of these countries as regards the movements of their domestic prices, foreign prices and exchange rates are examined. Next, the causal relationships determining domestic inflation and the balance of payments are specified and subjected to empirical verification. Domestic inflation is specified as a function of domestic monetary expansion and the imported inflation, while the balance of payments is specified as a function of the rate of credit expansion and the relative price of traded and non-traded goods. Finally, some general conclusions regarding the appropriate exchange rate policies for the Asian countries are made.

Keywords: Exchange Rate; Monetary Policy; Inflation Rate; Real Exchange Rate; Exchange Rate Regime (search for similar items in EconPapers)
Date: 1981
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-1-349-05166-3_15

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349051663

DOI: 10.1007/978-1-349-05166-3_15

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-04-01
Handle: RePEc:pal:palchp:978-1-349-05166-3_15