The pre-crisis exchange rate regimes of Asian countries are often described as soft or de facto dollar pegs. There is also a widespread suspicion that many countries in the region still remain covert dollar-peggers. This paper provides evidence that even before 1997 few Asian currencies were...

In a paper published in The World Economy, Ronald McKinnon and Gunther Schnabl claim that fluctuations in the nominal yen/dollar exchange rate are the principal causal factor behind the export and business cycles in East Asian countries (McKinnon and Schnabl, 2003). Their econometric work,...