Download or read book The Effect of Exchange Rate Volatility on International Trade in East Asia written by Kazunobu Hayakawa and published by . This book was released on 2008 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effect of Exchange Rate Volatility on International Trade written by and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Exchange Rate Risk Management written by George Allayannis and published by World Bank Publications. This book was released on 2001 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a large sample of East Asian nonfinancial corporations, firms using foreign currency derivatives had distinctive characteristics, such as larger size and foreign debt exposures. Unlike in studies of U.S. firms, there was only weak evidence that liquidity-constrained firms with greater growth opportunities hedged more. Firms appeared to use foreign earnings as a substitute for hedging with derivatives, and to engage in "selective" hedging. There was no evidence that East Asian firms eliminated their foreign exchange exposure by using derivatives. And firms using derivatives before the crisis performed just as poorly as nonhedgers during the crisis.

Download or read book Volatility of Exchange Rates and International Trade written by Sujit Kanti Das and published by . This book was released on 2004 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Currency Cooperation in East Asia written by Frank Rövekamp and published by Springer. This book was released on 2014-07-08 with total page 167 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores the opportunities and limits of currency cooperation in East Asia. Currency issues play an important role in the region. The Asian crisis of the late 90s was rooted in deficient currency arrangements. The Chinese RMB is not freely convertible yet, but policymakers in China nevertheless aim for a more international role of the Chinese currency. The recent change of direction in Japanese monetary policy caused a drastic depreciation of the Yen and led to warnings against a possible “currency war”, thus demonstrating that currency issues can also easily lead to political frictions. Most trade in and with the East Asian zone on the other hand is still conducted in US $. Against this background different modes of currency cooperation serve the goal of smoothing exchange rate fluctuations and capital flows. They are an important element to promote financial stability and to reduce the transaction cost for foreign trade or investment. The contributions of this book analyze the environment and design of currency cooperation in East Asia and their effects from a macro-and microeconomic viewpoint.

Download or read book Exchange Rate Regimes in East Asia written by Masahiro Kawai and published by Routledge. This book was released on 2004-08-02 with total page 588 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a deepening debate in East Asia about the prospects for common exchange rate arrangements, even including the formation of a common currency in the longer term. This raises a complex set of issues and this volume provides a detailed yet comprehensive examination of key issues in the debate. It looks, for example, at the nature and extent of linkages in East Asia, in terms of trade and foreign investment, finance, labour, and consumption, investment and output. It examines how the exchange rate affects various aspects of economies. And it critically analyzes various proposals for currency regimes for the region, including floating exchange rates, basket pegs, and currency union.

Download or read book Proposed Strategy for a Regional Exchange Rate Arrangement in Post crisis East Asia written by Masahiro Kawai and published by World Bank Publications. This book was released on 2000 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: A coordinated action by East Asian countries to stabilize their currencies against a common basket of major currencies (broadly representative of their average structure of trade and foreign direct investment) would help stabilize both intraregional exchange rates and effective exchange rates, in a way consistent with the medium-term objective of promoting trade investment and growth in the region.

Download or read book Exchange Rate Volatility and World Trade written by International Monetary Fund and published by International Monetary Fund. This book was released on 1984-07-08 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: In View of the continuation of substantial movements in exchange rate relationships among major currencies, the recent increase in protectionist pressures, and the disappointing performance of world trade, renewed concern has been expressed about the possible adverse effects of exchange rate variability on trade. Against the background of this concern, the following decision was reached at the ministerial meeting of the General Agreement of Tariffs and Trade (GATT) in November 1982.

Download or read book Toward an East Asian Exchange Rate Regime written by Duck-Koo Chung and published by Rowman & Littlefield. This book was released on 2007-05-01 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: East Asian exchange rates have become a global flashpoint. U.S. policymakers blame artificially low Asian currency values for global imbalances, including America's ballooning current account deficit. The solution, they argue, lies in some combination of greater exchange rate flexibility and the appreciation of Asian currencies against the dollar. Asian officials recognize the need to let their exchange rates rise, but they fear that would hamper growth and cut sharply into the value of their dollar reserves. Toward an East Asian Exchange Rate Regime offers a timely and comprehensive analysis of the resulting debates, drawing on expertise from China, Japan, South Korea, and the United States. The introduction reviews the issues at stake, sketches a variety of proposed exchange rate regimes, and discusses comparisons between East Asia and the West. Subsequent chapters examine the connection between global financial imbalances and East Asian monetary cooperation, China's potential role in regional coordination, the relationship between monetary and trade integration, and different paths toward regional cooperation. Authoritative yet concise, this is an essential primer on East Asian monetary integration. Contributors include Gongpil Choi (Korean Institute of Finance, Federal Reserve Bank of San Francisco), Masahiro Kawai (University of Tokyo, Asian Development Bank), Kwanho Shin (Korea University), Yunjong Wang (SK Institute), Masaru Yoshitomi (RIETI,Tokyo), and Yongding Yu (Chinese Academy of Social Sciences).

Download or read book The Impact of Exchange Rate Volatility on Trade Flows for East Asian Countries written by Wooi Hooy Chee and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Exchange Rate Volatility and Trade Flows Some New Evidence written by International Monetary Fund and published by International Monetary Fund. This book was released on 2004-05-19 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: NULL

Download or read book Exchange Rates Under the East Asian Dollar Standard written by Ronald I. McKinnon and published by MIT Press. This book was released on 2005 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: The policy dilemmas inherent in using the US dollar as the key currency for stabilizing exchange rates in East Asia.

Download or read book Global Volatility and Forex Returns in East Asia written by Sanjay Kalra and published by International Monetary Fund. This book was released on 2008-09 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: During 2001-07, increases in mature market volatility were associated with declines in forex returns for East Asian countries, consistent with an overall "flight to safety" effect. Estimates from GARCH models suggest that a 5 percentage point increase in mature market equity volatility generated an exchange rate depreciation of up to 1⁄2 percent. This sensitivity rose during the latter period in the sample, suggesting greater integration of Asian financial markets with global markets. Unconditional standard deviations estimated from these models also provide operational measures of "long-term" and "excess" volatility in forex markets. Long-run forex volatility declined as Asian economies settled down with generally stronger fundamentals in the post-crisis period to more flexible regimes along with a generally lower level of mature market volatility.

Download or read book Exchange Rate Volatility and Exports written by Myint Moe Chit and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis provides an empirical analysis of the impact of exchange rate volatility on the exports of five emerging East and South East Asian economies; China, Indonesia, Malaysia, the Philippines and Thailand. The countries under consideration are the main members of the impending ASEAN-China Free Trade Area (ACFTA), and the options for a closer monetary integration including proposais for the eventual formation of a currency union within the region are currently an active area of research and policy debate. Therefore, an understanding of the degree to which exchange rate volatility affects their export activity is important for setting the optimal exchange rate policy in emerging East Asian countries. Recognizing the specificity of the exports of the sample countries which is different from those of industrialised countries this study employs an augmented generalised gravity model instead of a pure gravity model. A GMM-IV approach is used to overcome the potential econometric problems of endogeneity and heteroskedasticity. In addition, this study is the first to conduct the recently developed panel unit-root and cointegration tests to verify the existence of a long-run stationary relationship between real exports and exchange-rate volatility. The benchmark measure of the exchange rate volatility which represents uncertainty is the standard deviation of the first difference of the logarithmic exchange rate. In order to check the robustness of the results two additional measures of exchange rate volatility - the moving average standard deviation of the logarithmic exchange rate (MASD) and the conditional exchange rate volatility which follows a Generalised Autoregressive Conditional Heteroscedascity process (GARCH) are also used to estimate the model. The results provide a strong evidence that exchange rate volatility has an economically and statistically significant negative impact not only on the overall exports to the world market but also on the intra-regional exports of emerging East Asian countries. In addition, the results indicate that the adverse effect of exchange rate volatility on exports is not a linear and is conditional on the financial sector development of the exporting country: the more financially developed an economy is, the less its exports are adversely affected by exchange rate volatility. These results are robust across different estimation techniques and do not depend on the variable chosen to proxy exchange rate uncertainty. In conclusion, the results of the thesis suggest that whilst exchange rate flexibility has desirable properties as a 'shock absorber' to dampen the impact of real shocks, on average it still has an adverse effect on the exports of the emerging East Asian countries, and the impact is more severe on a financially less developed economy.

Download or read book Exchange Rate Volatilities and Time varying Risk Premium in East Asia written by Chae-sik Chŏng and published by KIEP. This book was released on 2004 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Proposed Strategy for a Regional Exchange Rate Arrangement in Post Crisis East Asia written by Masahiro Kawai and published by . This book was released on 2016 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: A coordinated action by East Asian countries to stabilize their currencies against a common basket of major currencies (broadly representative of their average structure of trade and foreign direct investment) would help stabilize both intra-regional exchange rates and effective exchange rates - in a way consistent with the medium-term objective of promoting trade, investment, and growth in the region. After discussing major conceptual and empirical issues relevant to the exchange rate policies of East Asian countries, Kawai and Takagi propose a regional exchange rate arrangement designed to promote intraregional exchange rate stability and regional economic growth. They argue that:For developing countries, exchange rate volatility tends to significantly hurt trade and investment, making it inadvisable to adopt a system of freely floating exchange rates.Given the high share of intraregional trade and the similarity of trade composition in East Asia, exchange rate policy should be directed toward maintaining intraregional exchange rate stability, to promote trade, investment, and economic growth.The current policy of maintaining exchange rate stability against the U.S. dollar as an informal, uncoordinated mechanism for ensuring intraregional exchange rate stability is suboptimal. A pragmatic policy option - conducive to a more robust framework for cooperation in monetary and exchange rate policy - would be a coordinated action to shift the target of nominal exchange rate stability to a basket of tripolar currencies (the U.S. dollar, the Japanese yen, and the euro). This alternative would better reflect the region's diverse structure of trade and foreign direct investment.The authors envision no rigid peg. Instead, at least initially, each country could choose its own formal exchange rate arrangement - be it a currency board, a crawling peg, or a basket peg with wide margins. At times of crisis, the peg might be temporarily suspended, subject to the rule that the exchange rate would be restored to the original level as soon as practical. Only in extreme circumstances would the level be adjusted to reflect new equilibrium conditions.This paper - a product of the Office of the Chief Economist, East Asia and Pacific Region - is part of a larger effort in the region to study financial market development, capital flows, and exchange rate arrangements in East Asia.

Download or read book Exchange Rate Volatility and Trade Among the Asia Pacific Countries written by SaangJoon Baak and published by . This book was released on 2017 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to investigate the impact of exchange rate volatility on exports among 14 Asia Pacific countries, where various measures to raise the intra-region trade are being implemented. Specifically, this paper estimates a gravity model, in which the dependent variable is the product of the exports of two trading countries. In addition, it also estimates a unilateral exports model, in which the dependent variable is not the product of the exports of two trading countries but the exports from one country to another. By doing this, the depreciation rate of the exporting country's currency value can be included as one of the explanatory variables affecting the volume of exports.As the explanatory variables of the export volume, the gravity model adopts the product of the GDPs of two trading counties, their bilateral exchange rate volatility, their distance, a time trend and dummies for the share of the border line, the use of the same language, and the APEC membership. In the case of the unilateral exports model, the product of the GDPs is replaced by the GDP of the importing country, and the depreciation rate of the exporting country's currency value is dded. In addition, considering that the export volume will also depend on various onditions of the exporting country, dummies for exporting countries are also included as an explanatory variable.The empirical tests, using annual data for the period from 1980 to 2002, detect a significant negative impact of exchange rate volatility on the volume of exports. In addition, various tests using the data for sub-sample periods indicate that the negative impact had been weakened since 1989, when APEC had launched, and surged again from 1997, when the Asian financial crisis broke out. This finding implies that the impact of exchange rate volatility is time-dependent and that it is significantly negative at least in the present time. This phenomenon is noticed regardless which estimation model is adopted.In addition, the test results show that the GDP of the importing country, the depreciation of the exporting country's currency value, the use of the same language and the membership of APEC have positive impacts on exports, while the distance between trading countries have negative impacts. Finally, it turns out that the negative impact of exchange rate volatility is much weaker among OECD countries than among non-OECD counties.