Please use this identifier to cite or link to this item:
Full metadata record
DC FieldValueLanguage
dc.contributor.authorSchnabl, Guntheren_US
dc.description.abstractBefore and after the Asian crisis, the dollar has been the dominant anchor and reserve currency in East Asia. Due to underdeveloped capital markets and a very limited international role of the domestic currencies, the East Asian countries (except Japan) are likely to continue exchange rate stabilization and accumulation of international reserves. Yet expectations about a further depreciation of the dollar may trigger a broader orientation of exchange rate policies based on basket strategies. While the direction of trade suggests a substantial weight for the Japanese yen in East Asian countries' currency baskets, the role of the euro is enhanced by expectations about its long-term stability. (Rolling) econometric estimations of the basket structures in East Asia suggest growing weights of the euro and the yen in the currency baskets of Indonesia, Korea, Philippines, Singapore, Taiwan and Thailand. In contrast, for China, Hong Kong and Malaysia, the dollar remains the dominant anchor currency.en_US
dc.publisher|aHWWI Institute of International Economics |cHamburgen_US
dc.relation.ispartofseries|aHWWI Research Paper |x2-1en_US
dc.subject.keywordEast Asiaen_US
dc.subject.keywordCurrency Basketen_US
dc.subject.keywordExchange Rate Policiesen_US
dc.subject.keywordInternational Role of the Euroen_US
dc.titleCapital markets and exchange rate stabilization in East Asia: Diversifying risk based on currency basketsen_US
dc.typeWorking Paperen_US

Files in This Item:
855.14 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.