Exchange Rate Systems and Policies in Asia.
Material type: TextPublisher: Singapore : World Scientific Publishing Co Pte Ltd, 2008Copyright date: ©2008Description: 1 online resource (197 pages)Content type: text Media type: computer Carrier type: online resourceISBN: 9789812834515Subject(s): Currency boards -- Asia | Foreign exchange rates -- Asia | Monetary policy -- AsiaGenre/Form: Electronic books.Additional physical formats: Print version:: Exchange Rate Systems and Policies in AsiaDDC classification: 332.45609 LOC classification: HG3968.E96 2008Online resources: Click to ViewCONTENTS -- Introduction: Important Lessons from Some Major Exchange Rate and Monetary Experiences in Asia Paul S. L. Yip -- 1. Introduction -- 2. Lessons on the Choice of Exchange Rate Systems -- 2.1. The risks and costs of a fixed exchange rate system -- 2.2. Major misalignments could also happen in a floating regime -- 2.3. The real choice of exchange rate system for most economies -- 3. Capital Control and Speculative Attacks -- 4. Undervaluation of Yen: A Threat to Global Financial Stability? -- 4.1. Currency mismatch, low interest rate, carry trade and run of yen -- 4.2. Japan is caught -- 4.3. A potential threat to global financial stability? -- 5. Remarks: Other Major Lessons -- 5.1. Control of asset inflation -- 5.2. Exit strategy from a fixed exchange rate system -- 5.3. China's experience of banking reform -- 5.4. US bashing could be misleading -- 5.5. Variable wage component -- References -- The InternationalMonetary Fund and Exchange Rate Crisis Management Chong-Yah Lim -- 1. Post-Crisis Per Capita Income -- 2. China and Capital Control -- 3. East Asia and Capital Control -- 4. IMF and New Exchange Crises -- 5. Future Exchange Crises -- 6. Asian IMF Proposal -- 7. Another Southeast Asian Crisis -- Acknowledgments -- References -- The Case for an Intermediate Exchange Rate Regime John Williamson -- 1. A Taxonomy of the Options -- 2. Fixed Rates -- 3. Freely Floating Rates -- 4. The Adjustable Peg -- 5. The BBC Regime -- 6. Managed Floating -- 7. The Bipolarity Thesis -- 8. Choices -- 9. Concluding Remarks -- Acknowledgments -- References -- Japan's Deflationary Hangover:Wage Stagnation and the Syndrome of the Ever-Weaker Yen Ronald McKinnon -- 1. Introduction -- 2. The Historical Origins of Japan's Deflationary Trap -- 3. Wage Growth and the Exchange Rate -- 4. Parsing the Yen's Real Depreciation.
5. Intra-European Differences in Wage and Productivity Growth: An Aside -- 6. Interest Rates and Japan's Currency Mismatch -- 7. The Liquidity Trap and Portfolio Instability -- 8. The Yen Carry Trade -- 9. Fragile Export-Led Recovery: 2003-2007 -- 10. Stabilizing the Yen: A Concluding Note -- Acknowledgments -- References -- Managing Flexibility: Japanese Exchange Rate Policy, 1971-2007 Shinji Takagi -- 1. Introduction -- 2. Learning to Float: The Early to Late 1970s -- 2.1. From Bretton Woods to Smithsonian -- 2.2. Foreign exchange market intervention -- 2.3. Use of capital controls7 -- 3. Liberalizing the Capital Account: The Late 1970s to the Mid-1980s -- 3.1. Liberalization and the revised foreign exchange law -- 3.2. Further liberalization and its reversal -- 3.3. Liberalization under Japan-US agreement -- 4. From Plaza to Louvre and Beyond: 1985 Through the Early 1990s -- 4.1. From Plaza to Louvre -- 4.2. Policy coordination under the Louvre Accord -- 4.3. Additional policy measures during the Plaza-Louvre period -- 5. The Lost Decade and Fragile Recovery: From the Mid-1990s Through 2004 -- 5.1. The macroeconomic environment -- 5.2. The big bang and its impact on the yen -- 5.3. Intervention as a tool of macroeconomic policy -- 6. Characterizing Japan's Exchange Rate Policy -- 7. Conclusion -- Acknowledgments -- References -- China's Exchange Rate System Reform Paul S. L. Yip -- 1. Introduction -- 2. Debate Before the Reform -- 3. The Proposals -- 3.1. Transitional arrangements -- 3.1.1. Gradual appreciation, no widening of band or big jump in exchange rate -- 3.1.2. A basket of currencies with special care to the exchange rate against the US dollar at the early stage -- 3.1.3. A narrow exchange rate band at the early stage -- 3.2. Medium- to long-term arrangements -- 3.2.1. The debating process before the medium-term recommendation.
3.2.2. The medium-term recommendation -- 3.3. Supplementary package -- 3.3.1. Banking reform -- 3.3.2. Control of asset inflation -- 3.3.3. Variable wage component -- 3.3.4. Capital control -- 4. The Transitional Reform and the Immediate Market Response -- 4.1. The reform announced in July 2005 -- 4.2. Market response during the first year of the reform -- 4.3. Two important characteristics that contribute to the success -- 4.4. Measures to deal with speculative inflows -- 4.4.1. Measures that discourage speculative inflows -- 4.4.2. Measures that offset the impacts of speculative inflows -- 5. Excessive Asset Inflation: The More Likely Cause of a Failed Reform -- 5.1. The formation of a stock market bubble -- 5.1.1. Asset inflation: Inertia, expectation and changes in economic behaviors -- 5.1.2. The corrections in 2007 and the subsequent surges -- 5.1.3. China's last chance to stop the stock market bubble? -- 5.2. Property inflation -- 5.3. The rise in CPI inflation -- 6. Conclusions and Remarks -- Acknowledgments -- References -- The Fog Encircling the Renminbi Debate Yin-Wong Cheung, Menzie D. Chinn and Eiji Fujii -- 1. Introduction -- 2. Assessment -- 2.1. Analyses based on exchange rate indexes -- 2.2. The real exchange rate-income relationship -- 2.3. Other approaches -- 2.4. Trade surplus -- 2.5. International reserves -- 2.6. Interest rate dependence -- 3. Policy Concerns -- Acknowledgments -- Appendix. A Brief Literature Review -- References -- Insulation of India from the East Asian Crisis: An Analysis Pami Dua and Arunima Sinha -- 1. Introduction -- 2. The East Asian Crisis -- 2.1. Contagion effects -- 3. India's Prelude to the East Asian Crisis -- 3.1. Crisis of 1990-1991 -- 3.2. How the crisis built up -- 3.3. Liberalization of the Indian economy -- 3.3.1. Financial sector reforms with market-determined interest rates.
3.3.2. Monetary policy reforms and diversification of monetary instruments -- 3.3.3. Capital account reforms with reasonable degree of capital control -- 3.3.4. Reform towards greater exchange rate flexibility -- 4. How Did India Insulate Herself from the East Asian Crisis? -- 4.1. Intervention by the RBI -- 4.2. Monetary policy of the RBI -- 4.3. Trade linkages with East Asian countries -- 4.4. Restrictions on capital flows -- 5. Conclusions -- References -- Singapore's Exchange Rate Policy: Some Implementation Issues Hwee-Kwan Chow -- 1. Background -- 2. The Exchange Rate as Monetary Policy Instrument -- 3. Intervention Operations When Managing a Currency Basket -- 4. Domestic Liquidity Considerations -- 5. Challenges Ahead -- Acknowledgments -- References.
Key Features:Highlights the important lessons from some major exchange rate and monetary experiences in Asia, with some relatively revolutionary hypotheses drawn from the discussionsContains an Overview section, which links and elaborates on the most important discussions in the various papers on an issue-by-issue basisIncludes contributions by Ronald McKinnon (Stanford University) and John Williamson (Peterson Institute), among others.
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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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