Exchange rate misalignments in ASEAN-5 countries
The purpose of this paper is to estimate the exchange rate misalignments for Indonesia, Malaysia, Philippines, Singapore and Thailand before the currency crisis. By employing the sticky-price monetary exchange rate model in the environment of vector error-correction, the results indicate that the...
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| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2004
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/30771/1/IBBC2004.pdf http://irep.iium.edu.my/30771/ |
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| Institution: | Universiti Islam Antarabangsa Malaysia |
| Language: | English |
| Summary: | The purpose of this paper is to estimate the exchange rate misalignments for Indonesia, Malaysia, Philippines,
Singapore and Thailand before the currency crisis. By employing the sticky-price monetary exchange rate model
in the environment of vector error-correction, the results indicate that the Indonesia rupiah, Malaysian ringgit,
Philippines peso and Singapore dollar were overvalued before the currency crisis while Thai baht was
undervalued on the eve of the crisis. However, they suffered modest misalignment. Therefore, little evidence of
exchange misalignment is found to exist in 1997:2. In particular, Indonesia rupiah, Malaysia ringgit, Philippines
peso and Singapore dollar were only overvalued about 1 to 4 percent against US dollar while the Thai baht was
only 2 percent undervalued against US dollar. |
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