This chapter examines exchange rate options for East Asian countries, taking into account their real economic linkages as well as their international financial relations. Particular consideration is given to possible exchange rate cooperation within the region. For this purpose, the literature on the optimal peg is reconsidered and subsequently extended to include a country's international financial asset and liability situation. That is, instead of focusing solely on nominal or real effective exchange rates, the chapter proposes a blend of “real” and “financial” exchange rates for analyzing “optimal” exchange rate policy.
Volz, U. (2011), "Chapter 6 On the Choice of Exchange Rate Regimes for East Asian Countries", Cheung, Y., Kakkar, V. and Ma, G. (Ed.) The Evolving Role of Asia in Global Finance (Frontiers of Economics and Globalization, Vol. 9), Emerald Group Publishing Limited, Bingley, pp. 123-156. https://doi.org/10.1108/S1574-8715(2011)0000009011Download as .RIS
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