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Successful and Unsuccessful Attacks: Evaluating the Stability of the East Asian Currencies

Author

Listed:
  • Reza Siregar

    (School of Economics, University of Adelaide)

  • Victor Pontines

    (School of Economics, University of Adelaide)

Abstract

The key objective of our study is to re-examine again the stability of selected East Asian currencies. Had there been any other attacks on these currencies prior to their meltdowns in 1997? Equally important, have the currencies stabilized during the post-1997 crisis? To address these questions, we adopt the concept of exchange market pressure (EMP) index of Kaminsky, Lizondo, and Reinhart (1998). Due to non-normality of the statistical distribution of the EMP indices in general, this study applies the Extreme Value Theory (EVT) as proposed by Huisman, Koedijk, Kool, and Palm (2001). Lastly, we document events that arguably contribute to speculative attacks on these currencies.

Suggested Citation

  • Reza Siregar & Victor Pontines, 2004. "Successful and Unsuccessful Attacks: Evaluating the Stability of the East Asian Currencies," Centre for International Economic Studies Working Papers 2004-04, University of Adelaide, Centre for International Economic Studies.
    • Handle: RePEc:adl:cieswp:2004-04
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    References listed on IDEAS

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    More about this item

    Keywords

    Currency Crisis; Exchange Market Pressure; Extreme Value Theory; East Asia.;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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