TY  - JOUR
AU  - Takagi, Shinji
TI  - The Yen and Its East Asian Neighbors, 1980-1995: Cooperation or Competition?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5720
PY  - 1996
Y2  - August 1996
DO  - 10.3386/w5720
UR  - http://www.nber.org/papers/w5720
L1  - http://www.nber.org/papers/w5720.pdf
N1  - Author contact info:
Shinji Takagi
Osaka University
E-Mail: takagi@econ.osaka-u.ac.jp
M1  - published as Shinji Takagi. "The Yen and Its East Asian Neighbors 1980-1995: Cooperation or Competition?," in Takatoshi Ito and Anne O. Krueger, editors, "Changes in Exchange Rates in Rapidly Developing Countries: Theory, Practice, and Policy Issues" University of Chicago Press (1999)

AB  - By looking at how an East Asian currency moves when the yen fluctuates sharply against the US dollar, we sometimes find that the reaction has been much more significant than would be suggested by the econometric estimates of the weight of the yen in nominal exchange rate determination.  Moreover, the Korean won and the Malaysian ringgit have tended to move more closely with a depreciating yen, suggesting the countries' emphasis on export promotion.  The Singapore dollar, on the other hand, has tended to move more closely with an appreciating yen, underscoring the importance attached to price stability.  The paper concludes that, given the trend appreciation of the yen during the recent past, emphasis on price stability has contributed more to monetary cooperation in Asia than emphasis on export promotion.
ER  -