The Asian Currency Crisis The Big Three May have Caused It All亚洲货币的三大可能造成这一切的.docVIP

PAGE 21 PAGE 13 Exchange Rate Disequalibria: The Role of a Dominant Currency in the Asian Crisis and a Case for Currency Boards Ordean G. Olson Nova Southeastern University April 25, 1999 Exchange Rate Disequalibria: The Role of a Dominant Currency in The Asian Crisis and a Case for Currency Boards Author: Ordean Olson Assistant Professor Nova Southeastern University Abstract This paper will provide a diagnosis of the financial crisis in Asia focusing on the empirical record in the period leading up to the crisis, and building on the existing theories. The main goal is to emphasize the role of the currencies of the United States, Japan and Germany and volatility of the exchange rates of these currencies as an essential element in determining the cause of the Asian crisis. This paper also addresses and attempts to answer the question, Can a developing country achieve economic growth and development if it links its currency to a stable anchor, such as the U.S. dollar. The last part of the paper will be devoted to examining the role of currency boards as a possible alternative to the systems utilized by the Asian regimes. Table of Contents 1. Introduction 3 2. Domestic Credit Creation and Currency Crisis 7 3. Speculative Expectations, Multiple Equilibria, and Self-fulfilling Crises 8 4. Devaluation and Monetary Standards 8 The Volatility of Key Exchange Rates and Asian Monetary Cooperation 11 6. Currency Boards as an Alternative 12 a. Background on Currency Boards 12 b. A Case of Currency Boards 15 c. The Hong Kong Currency Board ; A Successful Fixed Rate Exchange System 16 7. Summary 18 References 19 Endnotes 22 Introduction The East Asian financial crisis has created renewed interest in the causes and consequences of an event that hit some of the most rapidly growing economies in the world, and has prompted one of the largest financial bailouts in his