Please use this identifier to cite or link to this item: http://hdl.handle.net/2440/108533
Citations
Scopus Web of Science® Altmetric
?
?
Type: Journal article
Title: It’s not yen, euro or koala bloc: greenback is still dominant in East Asia
Author: Rajaguru, G.
Khalid, A.
Barbera, F.
Citation: Australian Journal of Management, 2014; 39(4):549-571
Publisher: SAGE Publishing
Issue Date: 2014
ISSN: 0312-8962
1327-2020
Statement of
Responsibility: 
Gulasekaran Rajaguru, Ahmed M Khalid, Francesco Barbera
Abstract: Given the nature of East Asia’s economic structure, interregional exchange rate stability is an essential requirement for regional economic integration. One way to achieve exchange rate stability is for the region to adopt an anchor currency. However, the choice of a potential anchor is an important question for policy planners. This paper examines the role of 5 major currencies as candidates for an anchor currency in the East Asian region. In particular, the paper examines the dynamic linkages between a selected sample of East Asian currencies with each potential anchor currency, the Australian dollar, Japanese yen, euro, US dollar and Chinese renminbi. Utilizing a recently developed test procedure which distinguishes the long-run Granger non-causality from that in the short-run, this paper does not find any support to the much debated emergence of a yen bloc, euro bloc, or koala bloc. The empirical evidence brought forward in this paper suggests that the US dollar is still a dominant currency in the East Asian region.
Keywords: F33; F36; C18; C22; Anchor currency; cointegration; dynamic linkages; East Asian currency arrangements; Granger causality; vector error correction model (VECM)
Rights: © The Author(s) 2014
RMID: 0030050416
DOI: 10.1177/0312896214522255
Appears in Collections:Business School publications

Files in This Item:
File Description SizeFormat 
RA_hdl_108533.pdfRestricted Access813.39 kBAdobe PDFView/Open


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.