Abstract
This paper discusses adjustments of capital account restrictions and exchange rate regimes in East Asia. Monetary authorities have two options for these adjustments: Gradual adjustments and rapid adjustments. We analyze the costs and benefits for both adjustment options in each area, i.e., capital account restrictions and exchange rate regimes. The paper provides prominent country cases for each adjustment option to emphasize the benefits for policymakers. We then propose four transition policy options for East Asian countries aiming to relax capital account restrictions and increase flexibility in exchange rates from fixed regimes with capital account controls.
| Original language | English |
|---|---|
| Article number | 1550015 |
| Journal | Journal of International Commerce, Economics and Policy |
| Volume | 6 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2015 Oct 1 |
Keywords
- Adjustments of capital account
- East Asia
- capital controls
- exchange rate adjustments
- exchange rate regimes
- transition policy
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Finance
- Economics and Econometrics