Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145398
Authors: 
Pontines, Victor
You, Kefei
Year of Publication: 
2015
Series/Report no.: 
ADBI Working Paper Series 550
Abstract: 
Employing the panel convergence method of Phillips and Sul (2007) to the nominal deviation indicators of two recent unofficial constructions of the Asian Currency Unit (ACU) index, this paper examines the existence and extent of convergence in the movements of East Asian currencies against the ACU. Empirical results reveal that intra-East Asian exchange rate movements have not converged to form a cohesive, unified bloc where currencies share homogenous movements, regardless of whether one examines the data on intra-East Asian exchange rate movements before or after the collapse of Lehman Brothers in September 2008. Instead, a separate number of convergent clubs or blocs in the region have formed in recent years. Finally, and most importantly, economies in the region are, generally, converging at different speeds to two opposing poles of convergence: groups of relatively depreciating currencies, and groups of relatively appreciating currencies.
Subjects: 
Asian Currency Unit
exchange rate movements
currency blocs
JEL: 
F31
F36
C33
Document Type: 
Working Paper

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