An optimum currency area in ASEAN 5 countries: Is it appropriate to use American Dollar as the standard currency?

Riyanto, Feri Dwi, Hidayati, Bunga and Trapsila, Aji Purba (2021) An optimum currency area in ASEAN 5 countries: Is it appropriate to use American Dollar as the standard currency? Jurnal Ekonomi dan Studi Pembangunan (JESP), 13 (1). pp. 52-59. ISSN 25027115

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Abstract

ASEAN countries experienced an economic crisis in 1997/1998 and a financial crisis in 2008. The similar patterns of the problem among those countries make some researchers conduct studies about single currency unification. This research aims to analyze the currency impact of ASEAN 5 (Rupiah, Ringgit, Singapore Dollar, Baht, and Peso) on a currency shock in the other ASEAN countries. The concept of this study uses the exchange rate approach based on ASEAN countries with American Dollars and Singapore Dollars. Furthermore, this research analyzes a symmetrical currency response to the currency shock in another country. The study methods are short and long-term Vector Autoregression (VAR) models using monthly data in actual exchange rate variables from 1990 to 2019. The impulse response function (IRF) findings showed that responses to ASEAN currency pegged the currency to Singapore Dollars rather than US Dollars.

Item Type:	Journal Article
Keywords:	ASEAN 5 countries; Optimum Currency Area; Exchange Rate; Single Currency
Subjects:	14 ECONOMICS > 1401 Economic Theory > 140102 Macroeconomic Theory 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 > 1402 Applied Economics
Divisions:	Faculty of Economics > Department of Management
Depositing User:	Feri Dwi Riyanto
Date Deposited:	30 Nov 2021 21:44

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