Exchange Rate Regimes in East Asia

by Kawai,Masahiro; Kawai,Masahiro

• ISBN13: 9780415322812
• ISBN10: 0415322812
• Edition: 1st
• Format: Hardcover
• Copyright: 2004-08-13
• Publisher: Routledge

Summary

There is a deepening debate in East Asia about the prospects for common exchange rate arrangements, even including the formation of a common currency in the longer term. This raises a complex set of issues and this volume provides a detailed yet comprehensive examination of key issues in the debate. It looks, for example, at the nature and extent of linkages in East Asia, in terms of trade and foreign investment, finance, labour, and consumption, investment and output. It examines how the exchange rate affects various aspects of economies. And it critically analyses various proposals for currency regimes for the region, including floating exchange rates, basket pegs, and currency union. This book will be of interest to people studying common currency areas, international open economy macroeconomics, and regional economics, especially East Asia.

Table of Contents

List of figures	ix
List of tables and box	xii
List of contributors	xv
Preface	xvii
Abbreviations	xix
1 Economic linkages and implications for exchange rate regimes in East Asia	1	(14)
Gordon de Brouwer and Masahiro Kawai
2 Trade and foreign direct investment in East Asia	15	(88)
Masahiro Kawai and Shujiro Urata
3 'Revealed commonality': linkages in consumption, investment and output in East Asia	103	(28)
Gordon de Brouwer and Mardi Dungey
4 A multivariate approach to grouping financially integrated economies	131	(22)
Shinji Takagi and Kenichi Hi rose
5 International migration and trade liberalisation: some lessons from Asia	153	(44)
Junichi Goto
6 Patterns, economic implications and policy issues in international labour migration	197	(22)
Prema-chandra Athukorala
7 Exchange rate pass-through to export prices	219	(18)
Robert Dekle and Cathy Karnchanasai
8 The effects of exchange rate volatility on trade	237	(16)
Michael D. McKenzie
9 The cost of crises and learning to live with exchange rate volatility: evidence from survey measures of consumer business expectations	253	(15)
Gordon de Brouwer
10 Measuring real effective exchange rates	268	(34)
Menzie D. Chinn
11 Exchange rate regimes and monetary independence in East Asia	302	(18)
Chang -fin Kim and Jong-Wha Lee
12 'Fair value' and exchange rate misalignment	320	(15)
Chris Becker, Jaideep Bedi and Bob Rankin
13 The narrow road to the single Asian currency: lessons from optimal currency areas and the euro	335	(25)
Benoit Coeuré
14 The case for a tri-polar currency basket system for emerging East Asia	360	(25)
Masahiro Kawai
15 Which exchange rate regime for Asia?	385	(32)
Warwick J. McKibbin and Hong-Giang Le
16 Options for currency arrangements and their policy implications	417	(16)
Charles Adams and Romuald Semblat
17 Sequencing monetary and trade integration	433	(22)
Kwanho Shin and Yunjong Wang
Index	455