A Basket Currency for Asia

by Takatoshi Ito (Editor)

Overview

The failure of the dollar peg to prevent the Asian currency crisis of 1997 to 1998 has highlighted the importance of the exchange rate regime in Asia and provoked much discussion as to what the alternatives are in terms of exchange rate systems.

Bringing together extensive research on Asian basket currencies in one volume, this new text discusses whether a currency basket system is the answer, striking a balance between the theoretical and empirical. With strong policy implications for East Asia, the impressive team of contributors argue that for countries that have close economic relationships with several currency areas, it is well worth considering a currency basket system. The book also pursues the important idea of coordination failure, whereby if each individual country tries to adopt an optimal exchange rate given other neighbouring countries' policies, they may collectively fail to reach a region's optimal exchange rate regime.

A Basket Currency for Asia is a topical and significant text that will appeal to students and scholars of international finance and Asian economics.

Product Details

ISBN-13:	9780415547017
Publisher:	Taylor & Francis
Publication date:	05/21/2009
Series:	Routledge Studies in the Growth Economies of Asia
Pages:	228
Product dimensions:	6.12(w) x 9.19(h) x (d)

About the Author

Takatoshi Ito is Professor in the Graduate School of Economics and the Graduate School of Public Policy at the University of Tokyo, Japan.

Table of Contents

1. Introduction 2. How Did the Dollar Peg Fail in Asia? 3. Post-Crisis Exchange Rate Regimes in East Asia 4. On the Desirability of a Regional Basket Currency Arrangement 5. Economic Interdependence and International Coordination in East Asia 6. A Case for a Coordinated Basket for Asian Countries 7. A Common Currency Basket in Bond Markets in East Asia 8. Possibilities for the Introduction of a Common Currency Basket in East Asia, from an OCA Standpoint