ABSTRACT
The achievement of high and sustained growth rates, like those in East Asia and particularly in South Korea, is a major objective of policy making in any emerging country. In such a context, we can analyse the role of exchange rate policies in a number of ways. For example, we could analyse which exchange rate policy can be used in such a way as to obtain a degree of monetary independence and so implement more successful stabilization policies. Alternatively, we could investigate which exchange rate system is the more suitable for dealing with different types of capital flows, or for responding to specific shocks. We could also study which exchange rate system is the best in the framework of growing interdependence among Asian countries.
