Exchange Rate Regimes and Macroeconomic Stability

by Ho, Lok-Sang; Yuen, Chi-Wa; Hong Kong Economic Association

• ISBN13: 9781402072871
• ISBN10: 1402072872
• Format: Hardcover
• Copyright: 2002-11-01
• Publisher: Kluwer Academic Pub

Summary

The Asian crisis of 1997-1998 was a major influence on macroeconomic thinking concerning exchange rate regimes, the functioning of international institutions, such as the IMF and the World Bank, and international contagion of macroeconomic instability from one country to another. Exchange Rate Regimes and Macroeconomic Stability offers perspectives on these issues from the viewpoints of two Nobel Laureates, an IMF economist, and Asian economists. This book contributes new ideas to the ongoing debate on the role of domestic monetary authorities and international institutions in reducing the likelihood of international financial crises, as well as the problems associated with various exchange rate regimes from the standpoint of macroeconomic stability. Overall, the chapters contained in this volume offer interesting perspectives, which have been stimulated by the recent events in the foreign exchange market. They provide a useful reference for anyone interested in the development of exchange rate regimes, and represent considerable reflection by economists half a century after Bretton Woods.

Table of Contents

List of Contributors	vii
Foreword	xi
Assaf Razin
Acknowledgments	xiii
Introduction	1	(6)
Lok-Sang Ho
Chi-Wa Yuen
Part 1 The Asian Currency Crisis: Responses and Policy Options	7	(98)
Lessons from the Asian Financial Crisis, and the Prospects for Resuming High Growth	9	(24)
Wing Thye Woo
Financial Market Stability, Monetary Policy, and the IMF	33	(22)
Joseph Stiglitz
The IMF Approach to the Asian Currency Crises: An Alternative View	55	(6)
Charles Adams
Does Asia Need a Common Currency?	61	(16)
Robert Mundell
Recommending a Currency Basket System for Emerging East Asia	77	(28)
Masahiro Kawai
Part 2 Monetary Policy, Exchange Rate Regimes, and Macroeconomic Stability	105	(142)
A Comparative Analysis of Exchange Rate Regimes	107	(26)
Naoyuki Yoshino
Sahoko Kaji
Ayako Suzuki
Bringing about Realistic Exchange Rates: A Post-Asian Financial Crisis Perspective	133	(12)
Lok Sang Ho
Contemplating the Credibility of Currency Boards	145	(40)
Corrinne Ho
Currency Board, Asian Financial Crisis, and the Case for Put Options	185	(30)
Francis T. Lui
Leonard K. Cheng
Yum K. Kwan
The Currency Board in Hong Kong: Operational Weaknesses and a Proposed Refinement Scheme	215	(32)
Alex W.H. Chan
Postscript Understanding Crises	247	(4)
Chi-Wa Yuen
Index	251