Exchange-rate volatility, trade and "fixing for life" in Thailand
AbstractAt the outset of the 1997 financial crisis in East Asia, the quest to find a more suitable exchange rate policy has become an urgent policy challenge facing the East Asian economies. One of key policies agreed under ThailandÃâs August 1997 Letter of Intent (LOI) with the IMF was to adopt a more flexible exchange rate policy. The implementation took place in the early months of the crisis, but most of these Southeast Asian economies, including Thailand, have re-adopted their pre-1997 crisis rigid exchange rate policy in early 1999 (McKinnon, 2001). To grasp this Ãâfixing for your lifeÃâ phenomenon (Calvo and Reinhart 2000a and 2000b), we test the impact of real exchange rate volatilities of ThailandÃâs baht against the Japanese yen and the US dollar on the performance of the countryÃâs bilateral exports and imports with Japan and the U.S. from 1970 to first quarter of 1997.
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Bibliographic InfoArticle provided by Elsevier in its journal Japan and the World Economy.
Volume (Year): 14 (2002)
Issue (Month): 4 (December)
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Web page: http://www.elsevier.com/locate/inca/505557
Other versions of this item:
- Teuku Rahmatsyah & Gulasekaran Rajaguru & Reza Siregar, 2002. "Exchange Rate Volatility, Trade and Â“Fixing for LifeÂ” in Thailand," Centre for International Economic Studies Working Papers 2002-12, University of Adelaide, Centre for International Economic Studies.
- F19 - International Economics - - Trade - - - Other
- F31 - International Economics - - International Finance - - - Foreign Exchange
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