Reassessing the evidence of an emerging yen block in North and Southeast Asia

Kearney, Colm; Muckley, Cal
March 2007
International Review of Economics & Finance;2007, Vol. 16 Issue 2, p255
Academic Journal
Abstract: Using weekly observations on 9 Asian currencies from November 1976 to December 2003, we re-examine the evidence of an emerging yen block in North and Southeast Asia. In contrast to previous research that assumes instantaneous adjustment of exchange rates by the region''s Central Banks to variations in the world''s main global currencies, we use a dynamic general-to-specific Newey–West estimation strategy that allows gradual adjustment and calculation of both short and long run equilibrium responses. We find that there is no de facto yen block, but although the US dollar remains dominant throughout the region, the yen''s influence is rising amongst a subset of the currencies since the early 1990s.


Related Articles

  • Money supply endogeneity under a currency board regime: the case of Bosnia and Herzegovina. Gedeon, Shirley J. // Journal of Post Keynesian Economics;Fall2009, Vol. 32 Issue 1, p97 

    A currency board is a monetary regime based on an explicit commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate. Currency boards are thought to exhibit properties of money supply endogeneity and monetary self-regulation, eliminating the need for...

  • Devaluation of fixed exchange rates: optimal strategy in the presence of speculation. Pastine, Ivan // Economic Theory;2000, Vol. 15 Issue 3, p631 

    This paper analyzes devaluations in a fixed exchange rate system by endogenizing both the speculation and devaluation decisions. It is shown that deterministic devaluation rules are generally sub-optimal for the central bank. In order to deter speculation the central bank introduces uncertainty...

  • ALAN WALTERS. Walters, Alan // National Review;6/11/1990, Vol. 42 Issue 11, p34 

    Focuses on the proposed monetary union in Europe. Right to create money in either a government or a central bank or some foreign institution; Automation of monetary mechanisms; Pros and cons of pegging the exchange rate.

  • VACLAV KLAUS. Klaus, Vaclav // National Review;6/11/1990, Vol. 42 Issue 11, p32 

    Focuses on the case of flexible exchange rates in Europe. Proposed international monetary reform; Distinction between a unified currency and a system of national currencies linked together at pegged exchange rates; Idealism of central bankers.

  • ANTONIO MARTINO. Martino, Antonio // National Review;6/11/1990, Vol. 42 Issue 11, p35 

    Focuses on the proposed monetary union in Europe. Vision of the Delors Report; Implications of pegged exchange rates; Alternative to changing the exchange rates; Adoption of a monetary rule; Monetary of central bankers in Europe.

  • Recent Canadian Monetary Policy. COURCHENE, THOMAS J. // Journal of Money, Credit & Banking (Ohio State University Press);Feb71, Vol. 3 Issue 1, p35 

    The article focuses on monetary policy in Canada, in particular the central bank's use of anti-inflationary policies to combat rising unemployment and to float the dollar, as it questions the operations of the Bank of Canada. This article covers the highlights of Bank policy since 1965 and...


    The mechanism of the central banks' currency intervention is viewed. The forms of the interventions depended on monetary and currency politics targets and also instruments of their realization are examined. The criteria of the currency interventions efficiency stimation are adduced.

  • Lira Slump Does Not Herald New Weakness.  // Middle East Monitor: East Med;May2005, Vol. 15 Issue 5, p1 

    The article informs that after rising to a four-year high in early-March, Lira, Turkey's currency slumped, losing 12% against the U.S. dollar in several weeks. Lira strength took most analysts by surprise in 2004. The lira has appreciated in real terms steadily since mid-2002. Indeed, according...

  • REACTION FUNCTION MODELING FOR MONETARY POLICY OF NATIONAL BANK OF UKRAINE. Sholominska, T. G. // Actual Problems of Economics / Aktual'ni Problemi Ekonomìki;Jun2011, Vol. 120 Issue 6, p299 

    The article, basing on the data for the period of 2000-2008 constructs the function of reaction for the monetary policy of the National Bank of Ukraine in response to changes in such indices as inflation, GDP and exchange rate. The Bank uses such instruments as the interest rate, changes in...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics