Are ASEAN 5 countries suitable for optimum currency area? exchange rate approach

Riyanto, Feri Dwi (2021) Are ASEAN 5 countries suitable for optimum currency area? exchange rate approach. JIET (Jurnal Ilmu Ekonomi Terapan), 5 (2). pp. 107-120. ISSN 2541-1470

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Abstract

The issue of currency unification among ASEAN countries is often the concern of researchers given the reactive conditions of ASEAN countries to the 1997/1998 crisis and the 2008 financial crisis. This study aims to analyze the impact of ASEAN currencies (rupiah, ringgit, Singapore dollar, baht and peso) against shocks in other ASEAN countries. The concept of this study uses an exchange rate approach based on (peg) the currencies of ASEAN countries with the US Dollar and Singapore Dollar. In addition, this research aims to analyze the symmetrical response of currencies to shocks to currencies of other countries. The research method approaches the short and long-term vector autoregression (VAR) model using the monthly real exchange rate variable data from 1990 - 2018.The results of the impulse response function show that the response of ASEAN countries’ currencies (rupiah, ringgit, Singapore dollar, baht and peso) is more symmetric base (peg) currency with the Singapore dollar compared to the US dollar.

Item Type:	Journal Article
Keywords:	single currency; ASEAN 5 countries; optimum currency area; exchange rates
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140210 International Economics and International Finance 14 ECONOMICS > 1402 Applied Economics > 140212 Macroeconomics (incl. Monetary and Fiscal Theory) 14 ECONOMICS > 1403 Econometrics > 140305 Time-Series Analysis
Divisions:	Faculty of Economics > Department of Management
Depositing User:	Feri Dwi Riyanto
Date Deposited:	18 May 2022 11:10

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