Adams, Charles; Chow, Hwee Kwan - East Asian Bureau of Economic Research (EABER) - 2007
surveillance. Recently, proponents of Asian currency baskets have referred to the role the ECU played in constructing exchange rate … divergence indicators in Europe as evidence of the intrinsic usefulness of currency baskets for exchange rate monitoring. We show … difficulties interpreting the derived measures of divergence. Third, intra-regional exchange rate monitoring can lead to …