IDEAS home Printed from https://ideas.repec.org/a/cai/recosp/reco_545_1161.html
   My bibliography  Save this article

Exchange Rate Regimes and Equilibrium Exchange Rates in East Asia

Author

Listed:
  • Se-Eun Jeong
  • Jacques Mazier

Abstract

Estimation of equilibrium exchange rates is conducted for the three main Asian currencies (Japan, China, South Korea) with theoretical framework of Williamson [1994]. It highlights the problems of regional monetary cooperation that have gained momentum after the outbreak of the 1997-1998 financial crises in East Asia. The Chinese yuan became undervalued during the second part of the 1990s, which can explain its resistance faced with the Asian crisis. The yen became marked by contrast between a weak undervaluation against the dollar since 1998 and an overvaluation against the Chinese yuan since 1995 and Korean won since 1998. As for the Korean won, an overvaluation appeared before the Asian crisis, followed by an undervaluation compared to the dollar and yen. Persisting misalignments of these three currencies attest to the need for regional monetary cooperation. Estimated equilibrium exchange rates would be useful to set exchange rate parities at the launching of any new institutional arrangements (common basket peg policy, yen bloc, acu).

Suggested Citation

  • Se-Eun Jeong & Jacques Mazier, 2003. "Exchange Rate Regimes and Equilibrium Exchange Rates in East Asia," Revue économique, Presses de Sciences-Po, vol. 54(5), pages 1161-1182.
  • Handle: RePEc:cai:recosp:reco_545_1161
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=RECO_545_1161
    Download Restriction: free

    File URL: http://www.cairn.info/revue-economique-2003-5-page-1161.htm
    Download Restriction: free

    References listed on IDEAS

    as
    1. Chinn, Menzie D. & Prasad, Eswar S., 2003. "Medium-term determinants of current accounts in industrial and developing countries: an empirical exploration," Journal of International Economics, Elsevier, vol. 59(1), pages 47-76, January.
    2. Simon Wren-Lewis & Rebecca Driver, 1998. "Real Exchange Rates for the Year 2000," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa54.
    3. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    4. John Williamson, 1994. "Estimating Equilibrium Exchange Rates," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 17.
    5. Fagan, Gabriel & Henry, Jérôme & Mestre, Ricardo, 2001. "An area-wide model (AWM) for the euro area," Working Paper Series 0042, European Central Bank.
    Full references (including those not matched with items on IDEAS)

    More about this item

    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:cai:recosp:reco_545_1161. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire). General contact details of provider: http://www.cairn.info/revue-economique.htm .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.