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Exchange Rate Management in Developing Asia: Reassessment of the Pre-crisis Soft Dollar Zone

dc.contributor.authorKenichi Ohno
dc.date.accessioned2015-04-29T14:29:08Z
dc.date.available2015-04-29T14:29:08Z
dc.date.issued1999-06-30
dc.identifier.urihttp://hdl.handle.net/11540/4109
dc.description.abstractExchange rate rigidity is often cited as one of the primary causes of Asia's crisis. However, measured by real effective exchange rates (inflation-adjusted and tradeweighted exchange rates) using consumer prices or wholesale prices, no serious overvaluation is detected in the worst-hit economies during the pre-crisis period. Most of the Asian developing economies permitted their currencies to deviate from the strict dollar peg in the medium to long run in order to offset inflation gaps and movements of major currencies. Counterfactual simulations over the pre-crisis period show that, to stabilize competitiveness, proper adjustments for inflation by individual economies are more important than the choice of currency weights. Adoption of a common currency basket in the region does not add much stability. Pragmatic exchange rate policy rules distinguishing normal and crisis periods are suggested. To stabilize competitiveness during the normal period, no radical reform of the existing system is needed in developing Asia.
dc.languageEnglish
dc.publisherAsian Development Bank Institute
dc.rightsCC BY 3.0 IGO
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.titleExchange Rate Management in Developing Asia: Reassessment of the Pre-crisis Soft Dollar Zone
dc.typeWorking Papers
dc.subject.expertDevelopment
dc.subject.expertFinance
dc.subject.expertDevelopment Challenges
dc.subject.expertDevelopment Issues
dc.subject.expertDevelopment Problems
dc.subject.expertMicroenterprises Finance
dc.subject.expertCommercial Finance Companies
dc.subject.expertEnterprise Financing
dc.subject.expertFinancial Analysis
dc.subject.expertBanking Finance And Investment
dc.subject.adbADB
dc.subject.adbProject finance
dc.subject.adbDevelopment plans
dc.subject.adbStrategic planning
dc.subject.adbBusiness Financing
dc.subject.adbInvestment Requirements
dc.subject.adbInsurance Companies
dc.subject.adbInternational Monetary Relations
dc.subject.adbInternational Financial Market
dc.subject.adbExchange Rate
dc.subject.naturalInsurers
dc.subject.naturalInsurance stocks
dc.subject.naturalInsurance holding companies
dc.subject.naturalInsurance carriers
dc.subject.naturalInsurance agencies
dc.subject.naturalBusiness subsidies
dc.subject.naturalInvestment companies
dc.subject.naturalInternational banks and banking
dc.subject.naturalStock exchanges
dc.subject.naturalGrants
dc.subject.naturalLoans
dc.title.seriesResearch Paper Series
dc.title.volume1
dc.contributor.imprintAsian Development Bank
oar.themeDevelopment
oar.themeFinance
oar.adminregionAsia and the Pacific Region
oar.countryBangladesh
oar.countryBhutan
oar.countryIndia
oar.countryMaldives
oar.countryNepal
oar.countrySri Lanka
oar.countryBrunei Darussalam
oar.countryCambodia
oar.countryIndonesia
oar.countryLao People's Democratic
oar.countryMalaysia
oar.countryMyanmar
oar.countryPhilippines
oar.countrySingapore
oar.countryThailand
oar.countryViet Nam
oar.countryCook Islands
oar.countryFiji Islands
oar.countryKiribati
oar.countryMarshall Islands
oar.countryFederated States of Micronesia
oar.countryNauru
oar.countryPalau
oar.countryPapua New Guinea
oar.countrySamoa
oar.countrySolomon Islands
oar.countryTimor-Leste
oar.countryTonga
oar.countryTuvalu
oar.countryVanuatu
oar.countryAfghanistan
oar.countryArmenia
oar.countryAzerbaijan
oar.countryGeorgia
oar.countryKazakhstan
oar.countryKyrgyz Republic
oar.countryPakistan
oar.countryTajikistan
oar.countryTurkmenistan
oar.countryUzbekistan
oar.countryPeople's Republic of China
oar.countryHong Kong
oar.countryChina
oar.countryRepublic of Korea
oar.countryMongolia
oar.countryTaipei,China
oar.identifierOAR-004700
oar.authorOhno, Kenichi
oar.importtrue
oar.googlescholar.linkpresenttrue


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  • ADBI Research Paper Series
    The Asian Development Bank Institute (ADBI) research paper series disseminate selected work in progress to facilitate an exchange of ideas within academic and policy communities. An objective of the series is to circulate primary findings promptly, regardless of the degree of finish. ADBI’s activities are guided by its three strategic priority themes of inclusive and sustainable growth, regional cooperation and integration, and governance for policies and institutions.

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