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Thursday, July 16, 2020 | History

3 edition of How did the dollar peg fail in Asia? found in the catalog.

How did the dollar peg fail in Asia?

Takatoshi ItЕЌ

How did the dollar peg fail in Asia?

by Takatoshi ItЕЌ

  • 130 Want to read
  • 8 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Foreign exchange rates -- Southeast Asia -- Econometric models,
  • Devaluation of currency -- Southeast Asia -- Econometric models,
  • Exports -- Prices -- Southeast Asia -- Econometric models

  • Edition Notes

    StatementTakatoshi Ito, Eiji Ogawa, Yuri Nagataki Sasaki.
    SeriesNBER working paper series -- working paper 6729, Working paper series (National Bureau of Economic Research) -- working paper no. 6729.
    ContributionsOgawa, Eiji, 1931-, Sasaki, Yuri Nagataki., National Bureau of Economic Research.
    Classifications
    LC ClassificationsHB1 .W654 no. 6729
    The Physical Object
    Pagination59, [7] p. :
    Number of Pages59
    ID Numbers
    Open LibraryOL22401850M

      The Vietnamese dong peg to the US dollar has been in place for decades, within a limited band of 1–2 percent. This has been as an important measure of macroeconomic stability. The SBV promotes economic growth, controls inflation, stabilises the exchange rate and preserves the stability of the financial system. Angola: The announced removal of the US dollar peg to halt the depletion of foreign exchange reserves is another sign of the new government’s urge to reform the impaired oil-based economy Event On 3 January the Angolan Central Bank communicated it would shift from a fixed currency peg to a trading band in the course of this month.

      The RMB is worth a bit more now than it was in July, but China still pegs to the dollar - not to a basket of currencies. The US cannot complain too much though about China's failure to .   Between and , the dollar rose 25 %. Because it was pegged to the dollar, the yuan followed it. China's exports became more expensive than those from countries not tied to the dollar. It had to lower its exchange rate to remain competitive. But by the end of the year, once the dollar fell, China allowed the yuan to rise.

      It was first pegged in the 70s during the oil crisis, abandoned for a bit and then repegged again in because Hong Kong was being handed back to China and there was a mass exodus of capital. It has made the Hong Kong dollar stable but also cau.   The Hong Kong dollar peg to the US dollar has come under a lot of pressure. The problem they face is simply that such a peg also imports the inflation or deflation of the currency to which a peg is created. As the Greenback rises in the political-economic sea of international finance, it will become impossible to hold the peg.


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How did the dollar peg fail in Asia? by Takatoshi ItЕЌ Download PDF EPUB FB2

How Did the Dollar Peg Fail in Asia. Takatoshi Ito, Eiji Ogawa, Yuri Nagataki Sasaki. NBER Working Paper No. (Also Reprint No. r) Issued in August NBER Program(s):International Finance and MacroeconomicsCited by: How did the dollar peg fail in Asia.

Cambridge, MA: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Takatoshi Itō; Eiji Ogawa; Yuri Nagataki Sasaki; National Bureau.

Journals & Books; Help Journal of the Japanese and International Economies. Vol Issue 4, DecemberPages Regular Article. How Did the Dollar Peg Fail in Asia. Cited by: Additional Physical Format: Print version: Itō, Takatoshi, How did the dollar peg fail in Asia?.

Cambridge, MA: National Bureau of Economic Research, © Downloadable. In this paper we have constructed a theoretical model in which Asian firms maximize their profit, competing with Japanese and US firms in their markets. The duopoly model is used to determine export prices and volumes in response to the exchange rate fluctuations vis- -vis the Japanese yen and the US dollar.

Then, the optimal basket weight to minimize the fluctuation of the. How Did the Dollar Peg Fail in Asia. By Takatoshi Ito, Eiji Ogawa and Yuri Nagataki Sasaki.

Get PDF (2 MB) Abstract. In this paper we have constructed a theoretical model in which Asian firms maximize their profit, competing with Japanese and US firms in their markets.

The duopoly model is used to determine export prices and volumes in response. Downloadable (with restrictions). In this paper we have constructed a theoretical model in which Asian firms maximize their profit, competing with Japanese and US firms in their markets.

The duopoly model is used to determine export prices and volumes in response to the exchange rate fluctuations vis- -vis the Japanese yen and the US dollar.

Download PDF: Sorry, we are unable to provide the full text but you may find it at the following location(s): (external link). The latest crisis in Asia has revealed the vulnerability of the traditional dollar-peg system widely adopted by the Asian countries.

First, fluctuations of the yen against the dollar have led to. A dollar peg uses a fixed exchange rate. A country's central bank promises to give you a fixed amount of its currency in return for a U.S. dollar. The country must have lots of dollars on hand to maintain this peg.

As a result, most of the countries that use a U.S. dollar peg have significant exports to the United States.

Rumors had begun to spread about a devaluation of the Chinese renminbi, which led to bank runs. The speculators were betting on the HKMA to give up the HK dollar's linked exchange rate with U.S.

dollar. The U.S. dollar peg, which had been in place sincewas a pillar for Hong Kong's externally oriented economy. the monetary authorities stayed with a dollar peg system. We discuss the possibility that coordination failure in exchange rate polices among the monetary authorities partly explain their decision to remain with the dollar peg system.

A DE FACTO DOLLAR PEG SYSTEM AS A CAUSE OF THE EAST ASIAN CRISIS Exchange rate policies before the crisis. Many currency pegs are gone. How did the Hong Kong dollar peg survive. The peg between the Hong Kong dollar and the US dollar has withstood many attacks in the past 32 years.

The most dangerous of these was during the Asian crisis ofbut the government defended the peg forcefully. Since then, the peg has not come under serious pressure. The Asian financial crisis, also called the "Asian Contagion," was a sequence of currency devaluations and other events that began in the summer of and spread through many Asian markets.

The. A basket peg is likely to serve the ASEAN nations best, because their trade volumes with the United States, Europe, and Japan are of similar magnitudes. For example, Rajan () notes that during the Asian crises, Singapore, which pursued a flexible basket peg, outperformed Hong Kong, which pursued a dollar peg.

Emerging East Asia should manage their currencies to maintain relatively stable real effective exchange rates. Economies that are currently under a US dollar peg, Malaysia, China, and Hong Kong, need to exit to a currency basket system before the next round of exchange market pressure develops.

It’s time the dirham moved on from the dollar peg. This will place the UAE better positioned to tweak interest rates, policies when needed. After Thailand's long battle against the markets, the baht was freed on July 2nd from its peg with the dollar and promptly fell by more than 15%. Since then, the Philippine peso has also been.

The executive order did not mention limiting Hong Kong banks’ access to the US dollar payment system as a way of punishing China, which would undermine the currency peg system that has allowed the.

Bahrain, Iraq, Jordan, Lebanon, Oman, Qatar, Saudi Arabia and the United Arab Emirates each use the U.S. dollar as a currency peg.

Unlike Africa, the U.S. dollar is the only currency used through the region for fixing local currency ularly in the oil-rich countries, pegging to the U.S.

dollar permits a degree of financial stability for countries dependent on resource export for income. The Argentine Currency Board pegged the Argentine peso to the U.S.

dollar between and in an attempt to eliminate hyperinflation and stimulate economic it initially met with considerable success, the board's actions ultimately failed.

In contrast to what most people think, this peg actually did not exist, except only in the first years of the plan. Major currency peg breakdowns include the Argentine peso to the U.S. dollar inthe British pound to the German mark inand arguably the U.S.

dollar. Pegged to the U.S. dollar sincethe Hong Kong dollar is usually a dull currency. Except when it isn’t. While its trading band of HK$ to HK$ per U.S.

dollar, set in .