Policy Coordination in East Asia and across the Pacific

Koichiro Kamada and Izumi Takagawa

Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: In this paper, we construct a macro-econometric model that describes the economic activity in the Asia-Pacific area and provide quantitative insights into the recent policy debates on monetary and currency coordination among the East Asian economies. The model includes a wide variety of monetary and currency policy rules that the East Asian economies adopt and allows for one country's policymaking to have substantial effects on foreign countries. We apply the model to three current policy issues: (1) the desirability of currency basket pegs in East Asia, (2) the anticipated effects of China's currency policy reform, and (3) the non-negativity constraint on Japanese nominal interest rates. The simulation analyses show the external economy effects of policy rules quantitatively and suggest the difficulty of monetary and currency policy coordination among the East Asian economies.

Date: 2005-06
New Economics Papers: this item is included in nep-cmp, nep-mac and nep-sea
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Related works:
Journal Article: Policy coordination in East Asia and across the Pacific (2005)
Working Paper: Policy Coordination in East Asia and across the Pacific (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:hst:hstdps:d05-101

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