ABSTRACT
Chapter 3 by Agnès Bénassy-Quéré provides valuable information and insight into the role of the Japanese yen and other major currencies in the formulation and execution of the exchange rate policies of Asian countries. The first half of the chapter investigates the so-called ‘de facto exchange rate regimes’, as opposed to the official regimes reported by the IMF, by empirically estimating the weights given to the yen, dollar and other major currencies in the implicit basket pegs of eleven Asian economies.
