Exchange-rate volatility, trade and "fixing for life" in Thailand

Teuku Rahmatsyah, Gulasekaran Rajaguru, Reza Y. Siregar*

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

21 Citations (Scopus)

Abstract

At the outset of the 1997 financial crisis, the quest to find a more suitable exchange-rate policy has become an urgent task facing the East Asian economies. One of the key policies agreed under Thailand's August 1997 Leter of Intent (LOI) with the IMF was the adoption of a more flexible exchange-rate policy. However, the country re-adopted its pre-1997 crisis rigid exchange-rate policy in early 1999. To grasp this "fixing for your life" phenomenon, we test the impact of the exchange-rate volatilities of Thailands's baht against the yen and the US dollar on the performance of the country's bilateral trades with the two key partners.

Original languageEnglish
Pages (from-to)445-470
Number of pages26
JournalJapan and the World Economy
Volume14
Issue number4
DOIs
Publication statusPublished - Dec 2002
Externally publishedYes

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