International Financial Issues in the Pacific Rim
Global Imbalances, Financial Liberalization, and Exchange Rate Policy
9780226386829
9780226387086
International Financial Issues in the Pacific Rim
Global Imbalances, Financial Liberalization, and Exchange Rate Policy
The imbalanced, yet mutually beneficial, trading relationship between the United States and Asia has long been one of international finance’s most perplexing mysteries. Although the United States continues to post a substantial trade deficit—and China reaps the benefits of a surplus—the dollar has yet to sink in the face of ever-increasing account disparities. International Financial Issues in the Pacific Rim explains why the United States enjoys a seemingly symbiotic relationship with its trading partners despite stark inequities in the trade balance, especially with Asia. This timely and well-informed study also debunks the assumed link between economic openness and low inflation in the region, identifies the serious gap between academic and private-sector researchers’ understanding of exchange rate volatility, and analyzes the liberalization of Asian capital accounts. International Financial Issues in the Pacific Rim will have broad implications for global trade and economic policy issues in Asia and beyond.
368 pages | 50 line drawings, 104 tables | 6 x 9 | © 2008
National Bureau of Economic Research East Asia Seminar on Economics
Asian Studies: General Asian Studies
Economics and Business: Economics--Development, Growth, Planning, Economics--International and Comparative
Reviews
Table of Contents
Acknowledgments
Introduction
Takatoshi Ito and Andrew K. Rose
I. Global Imbalances
1. Life on the Tri-Polar Sphere: How Should Interest and Exchange Rates Realign Next?
Michael P. Dooley, David Folkerts-Landau, and Peter Garber
Comment: John Simon
2. Liquidity Risk Aversion, Debt Maturity, and Current Account Surpluses: A Theory and Evidence from East Asia
Shin-ichi Fukuda and Yoshifumi Kon
Comments: Linda S. Goldberg
Andrew K. Rose
3. Are Currency Appreciations Contractionary in China?
Jianhuai Shi
Comments: Ashvin Ahuja
Dante B. Canlas
II. Monetary Policy and Exchange Rates
4. The Relationship between Openness and Inflation in NIEs and the G7
Chung-Shu Wu and Jin-Lung Lin
Comments: Peter Blair Henry
John Simon
5. Pass-Through of Exchange Rates to Consumption Prices: What Has Changed and Why?
José Manuel Campa and Linda S. Goldberg
Comments: M. Chatib Basri
Kiyotaka Sato
6. Price Impacts of Deals and Predictability of the Exchange Rate Movements
Takatoshi Ito and Yuko Hashimoto
Comment: Eli Remolona
7. Adopting a Common Currency Basket Arrangement into the ASEAN Plus Three
Eiji Ogawa and Kentaro Kawasaki
Comments: Michael P. Dooley
Kiyotaka Sato
III. Liberalization, Market Access, and the Cost of Capital
8. Growth and Returns in Emerging Markets
Peter Blair Henry and Prakash Kannan
Comments: Takatoshi Ito
Etsuro Shioji
9. Bond Markets as Conduits for Capital Flows: How Does Asia Compare?
Barry Eichengreen and Pipat Luengnaruemitchai
Comment: Eiji Ogawa
10. Financial Liberalization under the WTO and Its Relationship with the Macro Economy
Lee-Rong Wang, Chung-Hua Shen, and Ching-Yang Liang
Comments: Shin-ichi Fukuda
Roberto S. Mariano
11. Cross-Border Acquisitions and Target Firms’ Performance: Evidence from Japanese Firm-Level Data
Kyoji Fukao, Keiko Ito, Hyeog Ug Kwon, and Miho Takizawa
Comments: M. Chatib Basri
Roberto S. Mariano
12. Stock Market Opening and the Cost of Capital: The Case of Korea
Inseok Shin and Chang-Gyun Park
Comments: Yuko Hashimoto
Chulsoo Kim
Introduction
Takatoshi Ito and Andrew K. Rose
I. Global Imbalances
1. Life on the Tri-Polar Sphere: How Should Interest and Exchange Rates Realign Next?
Michael P. Dooley, David Folkerts-Landau, and Peter Garber
Comment: John Simon
2. Liquidity Risk Aversion, Debt Maturity, and Current Account Surpluses: A Theory and Evidence from East Asia
Shin-ichi Fukuda and Yoshifumi Kon
Comments: Linda S. Goldberg
Andrew K. Rose
3. Are Currency Appreciations Contractionary in China?
Jianhuai Shi
Comments: Ashvin Ahuja
Dante B. Canlas
II. Monetary Policy and Exchange Rates
4. The Relationship between Openness and Inflation in NIEs and the G7
Chung-Shu Wu and Jin-Lung Lin
Comments: Peter Blair Henry
John Simon
5. Pass-Through of Exchange Rates to Consumption Prices: What Has Changed and Why?
José Manuel Campa and Linda S. Goldberg
Comments: M. Chatib Basri
Kiyotaka Sato
6. Price Impacts of Deals and Predictability of the Exchange Rate Movements
Takatoshi Ito and Yuko Hashimoto
Comment: Eli Remolona
7. Adopting a Common Currency Basket Arrangement into the ASEAN Plus Three
Eiji Ogawa and Kentaro Kawasaki
Comments: Michael P. Dooley
Kiyotaka Sato
III. Liberalization, Market Access, and the Cost of Capital
8. Growth and Returns in Emerging Markets
Peter Blair Henry and Prakash Kannan
Comments: Takatoshi Ito
Etsuro Shioji
9. Bond Markets as Conduits for Capital Flows: How Does Asia Compare?
Barry Eichengreen and Pipat Luengnaruemitchai
Comment: Eiji Ogawa
10. Financial Liberalization under the WTO and Its Relationship with the Macro Economy
Lee-Rong Wang, Chung-Hua Shen, and Ching-Yang Liang
Comments: Shin-ichi Fukuda
Roberto S. Mariano
11. Cross-Border Acquisitions and Target Firms’ Performance: Evidence from Japanese Firm-Level Data
Kyoji Fukao, Keiko Ito, Hyeog Ug Kwon, and Miho Takizawa
Comments: M. Chatib Basri
Roberto S. Mariano
12. Stock Market Opening and the Cost of Capital: The Case of Korea
Inseok Shin and Chang-Gyun Park
Comments: Yuko Hashimoto
Chulsoo Kim