@article{1385890,
      recid = {1385890},
      author = {McKinnon, Ronald I.},
      title = {Exchange rates under the East Asian dollar standard :  living with conflicted virtue /},
      publisher = {MIT Press,},
      address = {Cambridge, MA :},
      pages = {1 online resource (x, 279 pages) :},
      year = {2005},
      abstract = {The increasingly integrated economies of East Asia--China,  Hong Kong, Indonesia, Japan, Korea, Malaysia, the  Philippines, Singapore, Taiwan, and Thailand--face the  dilemma of how to achieve exchange-rate security in the  absence of a unifying "Asian euro." The US dollar has  become the region's dominant intraregional trading currency  as well as the monetary anchor to which East Asian  economies informally peg their currencies. In this timely  and original analysis of the benefits and risks of an East  Asian dollar standard, Ronald McKinnon takes issue with the  conventional view that urges flexible exchange rates on  financially fragile economies. He argues instead that East  Asian countries should coordinate their policies to keep  their exchange rates stable against the dollar. McKinnon  develops a conceptual framework to show where the  conventional wisdom on exchange rates has gone wrong.  Pressure on the "virtuous" high-saving dollar-creditor East  Asian nations to appreciate their currencies leads to a  "conflicted" choice between a possible deflationary slump  if they do appreciate and threatened trade sanctions if  they do not. Analyzing interactions among the East Asian  economies, McKinnon explains the rationale, and the need,  for greater exchange-rate security in the region, pointing  to the soft-dollar pegs adopted by these nations as steps  in the right direction. He suggests that the dollar  standard in East Asia could be rationalized through  collective action by national governments and considers the  effect of American monetary and trade policies on the East  Asian economy.},
      url = {http://library.usi.edu/record/1385890},
}