This study examines how the adoption of inflation-targeting influenced exchange rate pass-through and volatility in four Asian countries (Indonesia, Korea, the Philippines, and Thailand) over the sample period of January 1990 to June 2007. We find that reforming policy by adopting inflation...

After the Asian financial crisis, Indonesia changed its exchange rate system from a managed floating to flexible type, allowing market forces greater influence in determining the country's exchange rate. While the managed floating exchange rate system has brought predictable results to a certain...