With heterogeneous productivity and sticky prices in the short run, exchange rate changes can generate real effects on agents in the economy; the result is that the currency regime becomes a policy variable amenable to political competition. This paper discusses how special interests and...

"This century is touted as the "Asian Century," where the strong economic performance of Asian economies has accounted for much of the growth in the world. Over the last several years, Asian cities such as Hong Kong, Seoul, Singapore and Tokyo have also gained importance as global financial...