Pontines, Victor and You, Kefei ORCID: https://orcid.org/0000-0001-7253-5838 (2015) Asian Currency Unit (ACU), deviation indicators and exchange rate coordination in East Asia: A panel-based convergence approach. Japan and the World Economy, 36. pp. 42-55. ISSN 0922-1425 (doi:10.1016/j.japwor.2015.06.002)

Preview

PDF (Author Accepted Manuscript) 16278 YOU_Asian_Currency_Unit_2015.pdf - Accepted Version Download (499kB) | Preview

Abstract

Employing the panel convergence method of Phillips and Sul (2007) to the nominal deviation indicators of two recent unofficial constructions of an Asian Currency Unit (ACU) index, this paper examines the existence and extent of convergence in the movements of East Asian currencies against the ACU. Empirical results reveal that intra-East Asian exchange rate movements have not converged to form one, cohesive and unified bloc where currencies share homogenous movements, regardless of whether one examines the data on intra-East Asian exchange rate movements before or after the collapse of Lehman Brothers in September 2008. Instead, a separate number of convergent clubs or blocs in the region have formed in recent years. Finally, and most importantly, we observe at the end of the period of our examination that economies in the region are, generally, converging at different speeds to two opposing poles of convergence, that is, groups of relatively depreciating currencies and, on the other, groups of relatively appreciating currencies.

Item Type:	Article
Uncontrolled Keywords:	ASEAN + 3 and Hong Kong; China; Asian currency unit; Nominal deviation indicators; Panel convergence test
Subjects:	H Social Sciences > HB Economic Theory
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Department of Accounting & Finance
Last Modified:	27 Feb 2019 16:01
URI:	http://gala.gre.ac.uk/id/eprint/16278

Actions (login required)

View Item

Downloads