Exchange rate management in East Asia: words and deeds

Volz, Ulrich
External Publications (2020)

in: Frank Rövekamp, Moritz Bälz, Hanns Günther Hilpert (Eds.), Monetary Policy Implementation in East Asia, Heidelberg and New York: Springer, 2020, 45-60

ISBN: 978-3-030-50297-3
Information

This chapter discusses the declared exchange-rate policies of East Asian central banks and compares these with the de facto policies. Central banks that officially proclaim a fixed or managed exchange rate tend to intervene more in foreign exchange markets than central banks which officially follow a floating regime. However, even central banks that have implemented inflation-targeting frameworks with floating rates appear to carry out interventions. Several countries that self-describe their exchange-rate regime as “managed floating” appear to have been heavily engaged in foreign exchange-market interventions.