A WCU-based currency board as a sustainable exchange rate regime

Research output: Book Chapters | Papers in Conference ProceedingsBook ChapterResearchpeer-review

Abstract

This paper argues that avoidance of economic and financial crises requires that the values of national currencies maintain such real values as to be consistent with the underlying economic fundamentals. The nominal values of the currencies should therefore adjust spontaneously in response to changes in nominal values to preserve the underlying needed real values. When the fundamentals require a change in the real exchange rate, a mechanism for adjustment has to be in place. This paper recommends adopting a monetary anchor in terms of stable purchasing power vis-a-vis a comprehensive basket of world output, and introducing a crawling peg mechanism vis-a-vis this anchor.
Original languageEnglish
Title of host publicationAsian economic dynamism in the age of globalisation
PublisherCentre for Asian Pacific Studies
Pages23-36
Number of pages14
ISBN (Print)9789627365013
Publication statusPublished - 1 Jan 2006

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Exchange rate regimes
Currency board
Currency
Economic fundamentals
Economic crisis
Purchasing power
Financial crisis
Real exchange rate
Avoidance

Cite this

HO, L. S. (2006). A WCU-based currency board as a sustainable exchange rate regime. In Asian economic dynamism in the age of globalisation (pp. 23-36). Centre for Asian Pacific Studies.
HO, Lok Sang. / A WCU-based currency board as a sustainable exchange rate regime. Asian economic dynamism in the age of globalisation. Centre for Asian Pacific Studies, 2006. pp. 23-36
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HO, LS 2006, A WCU-based currency board as a sustainable exchange rate regime. in Asian economic dynamism in the age of globalisation. Centre for Asian Pacific Studies, pp. 23-36.

A WCU-based currency board as a sustainable exchange rate regime. / HO, Lok Sang.

Asian economic dynamism in the age of globalisation. Centre for Asian Pacific Studies, 2006. p. 23-36.

Research output: Book Chapters | Papers in Conference ProceedingsBook ChapterResearchpeer-review

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HO LS. A WCU-based currency board as a sustainable exchange rate regime. In Asian economic dynamism in the age of globalisation. Centre for Asian Pacific Studies. 2006. p. 23-36