This paper considers a theoretical model to examine an optimal exchange rate regime for (Asian) emerging market economies that export goods to the U.S., Japan, and neighboring countries. The optimality of the exchange rate regime is defined as minimizing the fluctuation of trade balances, in the...

In this paper we have constructed a theoretical model in which Asian firms maximize their profit, competing with Japanese and US firms in their markets. The duopoly model is used to determine export prices and volumes in response to the exchange rate fluctuations vis-…-vis the Japanese yen and...

Ogawa and Shimizu (2005) proposed an Asian Monetary Unit (AMU), which is a common currency basket composed of ASEAN plus three Asian currencies, and AMU Deviation Indicators (AMU DIs), which indicates deviations of each Asian currency in terms of the AMU compared to the benchmark rate. In this...

We analyze monetary policy in a currency union with sovereign risk by using a three-country model including a two-country currency union and introduce an ad hoc assumption that one of the two countries is exposed to sovereign risk. In our model, if expected fiscal revenue is less than current...

Covering a wide range of aspects surrounding economic integration in East Asia, this well-researched text will appeal to undergraduate and postgraduate students of development studies, regional economics and Asian studies. It will be of particular value to those on courses concerned with...