Optimum currency area criteria and volatility in ASEAN
The goal of regional integration is to promote greater macroeconomic coordination, and reduce the degree of macroeconomic volatility, in particular exchange rate fluctuations. This paper investigates how well optimum currency area (OCA) variables will work in the context of the ASEAN region when the...
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| Format: | Article |
| Language: | English |
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Asian Academy of Management (AAM) and Penerbit Universiti Sains Malaysia
2006
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| Online Access: | http://psasir.upm.edu.my/id/eprint/56412/1/Optimum%20currency%20area%20criteria%20and%20volatility%20in%20ASEAN.pdf |
| _version_ | 1825931410752405504 |
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| author | Masron, Tajul Ariffin Yusop, Zulkornain |
| author_facet | Masron, Tajul Ariffin Yusop, Zulkornain |
| author_sort | Masron, Tajul Ariffin |
| collection | UPM |
| description | The goal of regional integration is to promote greater macroeconomic coordination, and reduce the degree of macroeconomic volatility, in particular exchange rate fluctuations. This paper investigates how well optimum currency area (OCA) variables will work in the context of the ASEAN region when the Singapore Dollar, given its relative stability, is used as an anchor currency. The results indicate that OCA variables play an important role in explaining bilateral exchange rate volatility. In addition, exchange rate volatility exerts a negative impact on bilateral trade and gross domestic product (GDP). It is also a source of divergence among ASEAN members. |
| first_indexed | 2024-03-06T09:26:19Z |
| format | Article |
| id | upm.eprints-56412 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:26:19Z |
| publishDate | 2006 |
| publisher | Asian Academy of Management (AAM) and Penerbit Universiti Sains Malaysia |
| record_format | dspace |
| spelling | upm.eprints-564122017-07-31T09:17:22Z http://psasir.upm.edu.my/id/eprint/56412/ Optimum currency area criteria and volatility in ASEAN Masron, Tajul Ariffin Yusop, Zulkornain The goal of regional integration is to promote greater macroeconomic coordination, and reduce the degree of macroeconomic volatility, in particular exchange rate fluctuations. This paper investigates how well optimum currency area (OCA) variables will work in the context of the ASEAN region when the Singapore Dollar, given its relative stability, is used as an anchor currency. The results indicate that OCA variables play an important role in explaining bilateral exchange rate volatility. In addition, exchange rate volatility exerts a negative impact on bilateral trade and gross domestic product (GDP). It is also a source of divergence among ASEAN members. Asian Academy of Management (AAM) and Penerbit Universiti Sains Malaysia 2006 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56412/1/Optimum%20currency%20area%20criteria%20and%20volatility%20in%20ASEAN.pdf Masron, Tajul Ariffin and Yusop, Zulkornain (2006) Optimum currency area criteria and volatility in ASEAN. Asian Academy of Management Journal of Accounting and Finance, 2 (2). pp. 1-17. ISSN 1823-4992; ESSN: 2180-4192 http://web.usm.my/journal/aamjaf/2-2-1-2006.html |
| spellingShingle | Masron, Tajul Ariffin Yusop, Zulkornain Optimum currency area criteria and volatility in ASEAN |
| title | Optimum currency area criteria and volatility in ASEAN |
| title_full | Optimum currency area criteria and volatility in ASEAN |
| title_fullStr | Optimum currency area criteria and volatility in ASEAN |
| title_full_unstemmed | Optimum currency area criteria and volatility in ASEAN |
| title_short | Optimum currency area criteria and volatility in ASEAN |
| title_sort | optimum currency area criteria and volatility in asean |
| url | http://psasir.upm.edu.my/id/eprint/56412/1/Optimum%20currency%20area%20criteria%20and%20volatility%20in%20ASEAN.pdf |
| work_keys_str_mv | AT masrontajulariffin optimumcurrencyareacriteriaandvolatilityinasean AT yusopzulkornain optimumcurrencyareacriteriaandvolatilityinasean |