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Article: Exchange rate systems and linkages in the Pacific Basin.
- Article from:
- Atlantic Economic Journal
- Article date:
- March 1, 1998
- Author:
CopyrightCOPYRIGHT 1998 Atlantic Economic Society. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Introduction
Many countries in the Pacific Basin, especially in East Asia, have made remarkable economic progress in the last two decades. The rapid outward-oriented growth of these economies has important implications for the global economy. There is concern that these countries' economic allegiance is shifting from the U.S. to Japan. Considerable attention has been drawn to a growing role of the Japanese yen in the Pacific Basin region.
Frankel [1991] studies how the interest rates in the Pacific Basin countries depend on the interest rates in Tokyo and New York and shows "a gradually increasing role for Tokyo" [p. 13]. Chinn and Frankel [1994] find ...