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dc.contributor.authorCortinhas, Carlosen_GB
dc.contributor.departmentEconomic Policy Research Unit (NIPE), Universidade do Minhoen_GB
dc.contributor.departmentUniversity of Exeteren_GB
dc.date.accessioned2008-09-11T14:48:53Zen_GB
dc.date.accessioned2011-01-25T10:25:48Zen_GB
dc.date.accessioned2013-03-19T15:48:53Z
dc.date.issued2007en_GB
dc.description.abstractThis paper investigates, for the first time, the degree of exchange rate pass-through to domestic prices in all five founding members of ASEAN. For this purpose, a three variable recursive VAR model was applied which uses the Choleski decomposition method along the distribution chain of pricing, using data for the period 1968 to 2001. The results show that a strong case for entering a currency union can only be made for the cases of Singapore and Malaysia as in these countries there appears to be a case of exchange rate disconnect. A case for a common currency can also be made for Indonesia but for entirely different reasons. For this country, an independent monetary policy is a clear source of shocks to the economy and therefore a currency union would tend to eliminate then. A weaker case for a common currency can be made for the Philippines as evidence of some exchange rate pass-through to inflation was found but not to import prices. Finally, Thailand exhibits a clear case of exchange rate pass-through to import prices (but not to inflation) and thus evidence that a flexible exchange rate might be preferable as it provides the means to improve the country’s price competitiveness.en_GB
dc.identifier.urihttp://hdl.handle.net/10036/37672en_GB
dc.language.isoenen_GB
dc.relation.ispartofseriesNIPE Working Papersen_GB
dc.relation.ispartofseries2/2007en_GB
dc.relation.urlhttp://ideas.repec.org/p/nip/nipewp/2-2007.htmlen_GB
dc.relation.urlhttp://www3.eeg.uminho.pt/economia/nipe/docs/2007/NIPE_WP_2_2007.PDFen_GB
dc.subjectExchange Rate Pass-Throughen_GB
dc.subjectMonetary Integrationen_GB
dc.subjectASEANen_GB
dc.titleExchange Rate Pass-Through in ASEAN: Implications for the Prospects of Monetary Integration in the Regionen_GB
dc.typeWorking Paperen_GB
dc.date.available2008-09-11T14:48:53Zen_GB
dc.date.available2011-01-25T10:25:48Zen_GB
dc.date.available2013-03-19T15:48:53Z
dc.descriptionFormerly at Economic Policy Research Unit (NIPE), Universidade do Minho, now at University of Exeteren_GB


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