Currency Basket Regimes for Southeast Asia: The Worst System with the Exception of All Others

Ramkishen S. Rajan
2000 Social Science Research Network  
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more » ... policy makers and shapers Both theoretical and empirical, policy-oriented studies are emphasised, with a particular focus on developments within, or of relevance to, the Asia-Pacific region. Following the recent financial crises in Southeast Asia and elsewhere, the perennial issue of the exchange rate policy options for small and open developing countries has resurfaced. There seems to be an emerging consensus that the frequency with which "soft pegs" have been susceptible to speculative attacks in this era of escalating global capital flows, has increased pressure for developing countries to adopt corner solutions to exchange rates arrangements. This paper takes issue with this popular -"one-size-fits-all" -prescription of exchange rate arrangements for developing countries and explores exchange rate policy options for Southeast Asia
doi:10.2139/ssrn.230877 fatcat:jiumdpedrvgu3dy67zj6oytnum