May 2002 <p> Japan's interest rates have been compressed toward zero because of pressure coming through the foreign exchanges. Twenty years of current account surpluses have led to a huge build up of claims – mainly dollars – on foreigners. Because of ongoing fluctuations in the yen/dollar...</p>

January 2003 <p> Before the crisis of 1997-98, the East Asian economies—except for Japan but including China— pegged their currencies to the US dollar. To avoid further turmoil, the IMF now argues that these currencies should float more freely. However, our econometric estimations show that the...</p>

May 2003 <p> Rapidly growing Chinese exports are middle-tech—and increasingly high-tech—manufactured goods. China runs a huge and growing bilateral trade surplus with the United States, and the position of Japan has changed radically from being a net exporter to China in the 1980s and most of...</p>

May 2000 <p> Robert Mundell seems to be on both sides of the debate over European monetary unification and on the adoption of common monetary standards in other parts of the world. But this paradox can be resolved by noting that there are two Mundell models-earlier and later. From his theory of...</p>

August 2002 <p> Since the early 1980s, the smaller East Asian economies have experienced a synchronized business cycle. Before the Asian crisis of 1997-98, they pegged their exchange rates to the US dollar. Post crisis, we show that they have resumed dollar pegging on a high frequency, i.e.,...</p>

June 2000 <p> Japan's macroeconomic problem has yet to be properly diagnosed. Throughout the 1990s, policy makers could not decide on the proper macro economic measures to combat the country's severe economic slump. We propose a unified explanation, with deep historical roots, of why aggregate...</p>

The case for stabilizing China's exchange rate against the dollar is strong. Before 2005 when the yuan/dollar rate was credibly fixed, it helped anchor China's domestic price level. But gradual RMB appreciation from July 2005 to July 2008 created a "one-way-bet" that disordered China's financial...