IDEAS home Printed from https://ideas.repec.org/a/ris/eaerev/0259.html
   My bibliography  Save this article

In Search for a Measure of Currency Misalignment: the Case of the 1997 Asian Currency Crisis

Author

Listed:
  • Park, Daekeun

    (Hanyang University)

Abstract

The paper searches for an appropriate measure of currency misalignment in light of the 1997 Asian currency crisis. A couple of measures of currency misalignment, one based on purchasing power parity and the other based on equilibrium real exchange rate that is consistent with internal and external equilibrium are used to estimate the degree of currency misalignment for Korea, Indonesia, Malaysia, and Thailand before the 1997 currency crisis. The paper finds that the purchasing power parity based methods show that the Asian currencies were not significantly overvalued on the eve of the crisis. On the other hand, measures based on the equilibrium real exchange rate concept demonstrate that the Asian currencies were significantly overvalued. In consequence, the equilibrium real exchange rate based method seems to be a useful candidate for a measure of currency misalignment.

Suggested Citation

  • Park, Daekeun, 2000. "In Search for a Measure of Currency Misalignment: the Case of the 1997 Asian Currency Crisis," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 4(1), pages 33-61, March.
    • Handle: RePEc:ris:eaerev:0259
    DOI: 10.11644/KIEP.JEAI.2000.4.1.59
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.11644/KIEP.JEAI.2000.4.1.59
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.11644/KIEP.JEAI.2000.4.1.59?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Asian Currency Crisis; Asian Financial Crisis; Measure Currency Misalignment;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:eaerev:0259. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: JE Lee (email available below). General contact details of provider: https://edirc.repec.org/data/kieppkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.