ENGLISH

Currency Cooperation in East Asia

By Frank Rövekamp , Hanns Günther Hilpert (eds.)

Book information

Publisher
Springer International Publishing
Year
2014
ISBN
978-3-319-03061-6, 978-3-319-03062-3
DOI
10.1007/978-3-319-03062-3
Language
english
Format
PDF
Filesize
4 MB (4157143 bytes)
Series
Financial and Monetary Policy Studies 38
Edition
1
Pages
166\167
Time added
2014-04-13 05:00:00
Macroeconomics/Monetary Economics; Economic Policy

Description

This book explores the opportunities and limits of currency cooperation in East Asia. Currency issues play an important role in the region. The Asian crisis of the late 90s was rooted in deficient currency arrangements. The Chinese RMB is not freely convertible yet, but policymakers in China nevertheless aim for a more international role of the Chinese currency. The recent change of direction in Japanese monetary policy caused a drastic depreciation of the Yen and led to warnings against a possible “currency war”, thus demonstrating that currency issues can also easily lead to political frictions. Most trade in and with the East Asian zone on the other hand is still conducted in US $. Against this background different modes of currency cooperation serve the goal of smoothing exchange rate fluctuations and capital flows. They are an important element to promote financial stability and to reduce the transaction cost for foreign trade or investment. The contributions of this book analyze the environment and design of currency cooperation in East Asia and their effects from a macro-and microeconomic viewpoint.

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