Exchange Rate Policy and Interdependence : Perspectives from the Pacific Basin (Hardcover)--by Reuven Glick [1994 Edition] ISBN: 9780521461108

Why countries choose different exchange rate arrangements and how these arrangements affect domestic monetary policy control and macroeconomic stability are questions of substantial interest to policy makers and researchers alike. The countries of the Pacific Basin region offer a wide variety of examples for the comparative study of the implications of different exchange rate arrangements. The essays in this volume examine the degree of financial interdependence and the conduct of exchange rate and monetary policy among Pacific Basin countries. The essays address four broad issues: one, the degree of regional financial market integration in the Pacific Basin, two, the implications of choosing different exchange rate regimes for domestic macroeconomic stability, three, the effect of exchange rate intervention policy on the conduct of domestic monetary policy, and four, the prospects for a yen currency bloc. Some of the essays focus on the national experience of specific countries in the Pacific Basin; others adopt a cross-country comparison approach. Cover......Page 1 Frontmatter......Page 4 Contents......Page 8 List of contributors......Page 10 Preface......Page 12 Exchange rate policy and interdependence......Page 14 1 - Overview......Page 16 I - International financial market integration......Page 30 2 - Financial links around the Pacific Rim: 1982--1992......Page 32 3 - Relative returns on equities in Pacific Basin countries......Page 60 4 - Exchange rate policy, international capital mobility, and monetary policy instruments......Page 80 II - Choice of exchange rate regimes......Page 107 5 - Exchange rate management: a partial review......Page 109 6 - Exchange rate policy and insulation from external shocks: the cases of Korea and Taiwan, 1970--1990......Page 148 7 - Trade price shocks and insulation: Australia's experience with floating rates......Page 169 8 - The role of the exchange rate in New Zealand monetary policy......Page 186 9 - Officially floating, implicitly targeted exchange rates: examples from the Pacific Basin......Page 208 III - Intervention and sterilization policies......Page 233 10 - Monetary policy, intervention, and exchange rates in Japan......Page 235 11 - The signaling effect of foreign exchange intervention: the case of Japan......Page 268 12 - Sterilization of the monetary effects of current account surpluses and its consequences: Korea, 1986--1990......Page 296 IV - Prospects for a yen bloc......Page 321 13 - On the possibility of a yen bloc......Page 323 14 - Economic fundamentals and a yen currency area for Asian Pacific Rim countries......Page 350 Index......Page 369 Over the past thirty years the Pacific Basin region has become more integrated with the rest of the world and played an increasingly important role in the world economy. While much has been written on Pacific Basin trade and economic growth, relatively few studies have been published on the conduct of exchange rate and monetary policies in the economies of the region. These papers should be of interest to readers with an interest in broadening their understanding of different exchange rate arrangements as well as those wishing to deepen their knowledge of Pacific Basin economies. While much has been written on Pacific Basin trade and economic growth, few studies have focused on the conduct of exchange rate monetary policies in the economies of the region. The papers should interest readers who wish to broaden their understanding of different exchange rate arrangements as well as their knowledge of Pacific Basin economies. Since the collapse of the Bretton Woods system of fixed exchange rate parities in the early 1970s, countries have been largely on their own in making choices about their exchange rate arrangements. Edited By Reuven Glick, Michael M. Hutchison. Includes Bibliographical References And Index.