Are ASEAN 5 Countries Suitable for Optimum Currency Area? Exchange Rate Approach
Downloads
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.
Keywords: Single Currency, ASEAN 5 Countries, Optimum Currency Area, Exchange Rates
JEL: C23; F31
Achsani, N. A., Fauzi, A. J. F., & Abdullah, P. (2009). Keterkaitan Inflasi Dengan Nilai Tukar Riil: Analisis Komparatif Antara Asean+ 3, Uni Eropa Dan Amerika Utara. Majalah Ekonomi, 19(3).
Ariefianto, M. D., & Warjiyo, P. (2010). Pergerakan Bersama Mata Uang ASEAN 4 Periode 1997-2005: Suatu Aplikasi Teori Optimal Currency Area dengan Menggunakan Model Vector Error Correction. Buletin Ekonomi Moneter dan Perbankan, 12(4), 481-516.
Barseghyan, G., & Baghdasaryan, V. (2019). Optimum currency area theory: evidence from post-Soviet countries and implications for Eurasian Economic Union. Post-Communist Economies, 31(3), 301-324.
Bayoumi, T., & Eichengreen, B. (1993). One money or many? On analyzing the prospects for monetary unification in various parts of the world (No. 1554-2016-132533).
Bayoumi, T., & Eichengreen, B. (1997). Ever closer to heaven? An optimum-currency-area index for European countries. European economic review, 41(3-5), 761-770.
Bayoumi, T., & Eichengreen, B. (1997a). Optimum currency areas and exchange rate volatility: Theory and evidence compared. International trade and finance: New frontiers for research, 184-215.
Bayoumi, T., & Eichengreen, B. (1998). Exchange rate volatility and intervention: implications of the theory of optimum currency areas. Journal of International Economics, 45(2), 191-209.
Euistina. (2007). Analisis Pergerakan Nilai Tukar Rupiah terhadap Dollar, Yen, Yuan dan Won. Skripsi, Institut Pertanian Bogor.
Girardin, E., & Steinherr, A. (2008). Regional Monetary Units for East Asia: Lessons from Europe.
Hessel, J. (2019). Medium-term asymmetric fluctuations and EMU as an optimum currency area.
Kenen, P. B. (1969). The international position of the dollar in a changing world. International Organization, 23(3), 705-718.
Krugman, P. R. dan Maurice, O. (1999). Ekonomi Internasional (Teori dan Kebijakan). Jakarta: Raja Grafindo Persada.
Kurniati, Y. (2007). Kerjasama Nilai Tukar. Jakarta: Elex Media Komputindo.
Kusuma, D. B. W., & Putranto, A. D. (2010). Penerapan Kriteria Optimum Currency Area dan Volatilitasnya: Studi Kasus ASEAN-5+ 3. Buletin Ekonomi Moneter dan Perbankan, 13(2), 193-222.
McKinnon, R. I. (1963). Optimum currency areas. The American economic review, 53(4), 717-725.
Mongelli, F. P. (2002). ‘New'views on the optimum currency area theory: What is EMU telling us?. Available at SSRN 357400.
Mundell, R. A. (1961). A theory of optimum currency areas. The American economic review, 51(4), 657-665.
Nachrowi, D. dan Hardius, U. (2006). Ekonometrika. Jakarta: Lembaga Penerbit Fakultas Ekonomi Universitas Indonesia.
Partisiwi, T. (2008). Analisis Kemungkinan Penyatuan Mata Uang (Currency Unification) di ASEAN+ 3: Pendekatan Keragaman Exchange Rate.[Skripsi]. Institut Pertanian Bogor.
Copyright (c) 2020 Feri Dwi Riyanto
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
JIET (Jurnal Ilmu Ekonomi Terapan) (p-ISSN: 2541-1470; e-ISSN: 2528-1879) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License
Authors who publish with JIET (Jurnal Ilmu Ekonomi Terapan) agree to the following terms:
- The journal allows the author to hold the copyright of the article without restrictions.
- The journal allows the author(s) to retain publishing rights without restrictions
- The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution ShareAlike 4.0 International License (CC BY-SA).