Fear of Floating in East Asia?

18 Pages Posted: 27 Apr 2009

See all articles by Soyoung Kim

Soyoung Kim

affiliation not provided to SSRN

Sunghyun Henry Kim

Sungkyunkwan University - Department of Economics

Yunjong Wang

SK Research Institute - Seoul Finance Center

Abstract

We examine the de facto exchange rate arrangements in eight East Asian countries during the post-Asian crisis period. The empirical results suggest that three countries adopted a hard peg or a peg with capital account restrictions, whereas five countries moved toward a more flexible exchange rate arrangement in the post-crisis period. Three of these five countries (Korea, Indonesia and Thailand) achieved a level of exchange rate flexibility close to the level accomplished in a free floater such as Australia. These results suggest that ‘fear of floating’ in East Asia is not prevalent in the post-crisis period, supporting the bipolar view of the optimal exchange rate regime.

Suggested Citation

Kim, Soyoung and Kim, Sunghyun Henry and Wang, Yunjong, Fear of Floating in East Asia?. Pacific Economic Review, Vol. 14, Issue 2, pp. 176-193, May 2009. Available at SSRN: https://ssrn.com/abstract=1395149 or http://dx.doi.org/10.1111/j.1468-0106.2009.00445.x

Soyoung Kim (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Sunghyun Henry Kim

Sungkyunkwan University - Department of Economics ( email )

110-745 Seoul
Korea

Yunjong Wang

SK Research Institute - Seoul Finance Center ( email )

Seoul
Korea

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