Adjustments of Capital Account Restrictions and Exchange Rate Regimes in East Asia

Journal of International Commerce, Economics and Policy, Vol. 6, No. 3, 2015

32 Pages Posted: 29 Oct 2015

See all articles by Naoyuki Yoshino

Naoyuki Yoshino

Asian Development Bank Institute

Sahoko Kaji

Keio University

Tamon Asonuma

International Monetary Fund Research Department

Multiple version iconThere are 2 versions of this paper

Date Written: October 7, 2015

Abstract

This paper discusses adjustments of capital account restrictions and exchange rate regimes in East Asia. Monetary authorities have two options for these adjustments: Gradual adjustments and rapid adjustments. We analyze the costs and benefits for both adjustment options in each area, i.e., capital account restrictions and exchange rate regimes. The paper provides prominent country cases for each adjustment option to emphasize the benefits for policymakers. We then propose four transition policy options for East Asian countries aiming to relax capital account restrictions and increase flexibility in exchange rates from fixed regimes with capital account controls.

Keywords: Adjustments of capital account; capital controls; exchange rate adjustments; exchange rate regime; transition policy; East Asia

JEL Classification: F33; F41; F42

Suggested Citation

Yoshino, Naoyuki and Kaji, Sahoko and Asonuma, Tamon, Adjustments of Capital Account Restrictions and Exchange Rate Regimes in East Asia (October 7, 2015). Journal of International Commerce, Economics and Policy, Vol. 6, No. 3, 2015. Available at SSRN: https://ssrn.com/abstract=2681439

Naoyuki Yoshino

Asian Development Bank Institute ( email )

Kasumigaseki Building 8F
3-2-5, Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

Sahoko Kaji

Keio University ( email )

2-15-45 Mita
Minato-ku
Tokyo, 108-8345
Japan

Tamon Asonuma (Contact Author)

International Monetary Fund Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
16
Abstract Views
266
PlumX Metrics