Abstract
It is now common knowledge that rigid pegging of the exchange rate invariably constrains monetary policy independence. Further, both theory and the lessons of experience with pegged exchange rates have shown that such a policy often loses credibility over time and induces booms followed by inevitable busts and crises. The question is: have Asian countries paid any heed to this?
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4 Exchange Rate Regimes in Asia
8. For instance, see R. S. Rajan (2002). “Exchange Rate Policy Options for Post-Crisis Southeast Asia: Is There a Case for Currency Baskets?”, The World Economy, 25, pp.137–163.
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© 2011 Ramkishen S. Rajan
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Rajan, R.S. (2011). Exchange Rate Regimes in Asia. In: Emerging Asia. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230306271_4
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DOI: https://doi.org/10.1057/9780230306271_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-31562-8
Online ISBN: 978-0-230-30627-1
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