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Policy Coordination in East Asia and across the Pacific

Author

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  • Koichiro Kamada

    (Bank of Japan)

  • Izumi Takagawa

    (Bank of Japan)

Abstract

This paper constructs an econometric model that describes the relationships in the Asia-Pacific region and gives quantitative insights into the recent policy debates on policy coordination among the East Asian economies. The model includes various monetary and currency policy rules that the actual East Asian economies adopt and creates an environment where one country's policymaking has economic impacts on its neighbors. We apply the model to three current policy issues: (i) the desirability of currency basket pegs in East Asia, (ii) the anticipated effects of China's currency reform, and (iii) the non-negativity constraint on the Japanese nominal interest rates.

Suggested Citation

  • Koichiro Kamada & Izumi Takagawa, 2005. "Policy Coordination in East Asia and across the Pacific," Bank of Japan Working Paper Series 05-E-4, Bank of Japan.
  • Handle: RePEc:boj:bojwps:05-e-4
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    References listed on IDEAS

    as
    1. Koichiro Kamada & Ichiro Muto, 2000. "Forward-looking Models and Monetary Policy in Japan," Bank of Japan Working Paper Series Research and Statistics D, Bank of Japan.
    2. Morris Goldstein & Graciela Kaminsky & Carmen Reinhart, 2017. "Methodology and Empirical Results," World Scientific Book Chapters, in: TRADE CURRENCIES AND FINANCE, chapter 11, pages 397-436, World Scientific Publishing Co. Pte. Ltd..
    3. Kawai, Masahiro, 2002. "Exchange Rate Arrangements in East Asia: Lessons from the 1997-98 Currency Crisis," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 20(S1), pages 167-204, December.
    4. Morris Goldstein & Mohsin S. Khan, 2017. "Income and Price Effects in Foreign Trade," World Scientific Book Chapters, in: TRADE CURRENCIES AND FINANCE, chapter 1, pages 3-81, World Scientific Publishing Co. Pte. Ltd..
    5. Koichiro Kamada & Yasutaka Oenoki & Katsunori Watanabe, 1998. "A Local Model of Asian Economies," Bank of Japan Working Paper Series Research and Statistics D, Bank of Japan.
    6. Jeffrey A. Frankel & Shang-Jin Wei, 1994. "Yen Bloc or Dollar Bloc? Exchange Rate Policies of the East Asian Economies," NBER Chapters, in: Macroeconomic Linkage: Savings, Exchange Rates, and Capital Flows, pages 295-333, National Bureau of Economic Research, Inc.
    7. Stanley Fischer, 2001. "Exchange Rate Regimes: Is the Bipolar View Correct?," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 3-24, Spring.
    8. Koichiro Kamada & Ko Nakayama & Izumi Takagawa, 2002. "Deepening Interdependence in the Asia-Pacific Region: An Empirical Study Using a Macro-Econometric Model," Bank of Japan Working Paper Series Research and Statistics D, Bank of Japan.
    9. Takatoshi Ito & Mr. Tamim Bayoumi & Mr. Peter Isard & Mr. Steven A. Symansky, 1996. "Exchange Rate Movements and Their Impact on Trade and Investment in the APEC Region," IMF Occasional Papers 1996/011, International Monetary Fund.
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