CONTENTS -- Foreword -- Biography -- BIOGRAPHIES OF EDITORS -- BIOGRAPHIES OF CONTRIBUTORS -- Introduction -- References -- I. Overview -- 1. The Asian Crisis After 10Years Barry Eichengreen -- 1.1. Introduction -- 1.2. Post-Crisis Changes -- 1.3. Forecasting Is Risky, Especially When It Involves The Future -- 1.4. The Crisis Part of the Story -- 1.5. Concluding Remarks: The Credit Crisis and Asia's Reaction -- References -- II. Exchange Rate Regimes and International Reserves -- 2. Still Searching for the Middle Ground?:Asian Exchange Rate Regimes A Decade since the 1997-1998 Crisis Tony Cavoli and Ramkishen S. Rajan -- 2.1. Introduction -- 2.2. Official Exchange Rate Regimes in Asia -- 2.3. De Facto Exchange Rate Regimes in Crisis-hit Asia -- 2.3.1. Existing Classifications -- 2.3.2. Some Simple De Facto Measures -- 2.3.3. Frankel-Wei Tests: Static Estimates -- 2.3.4. Frankel-Wei Tests: Dynamic Estimates -- 2.3.5. Exchange Rate Flexibility Index -- 2.4. Concluding Remarks -- References -- 3. Hoarding of International Reserves: A Comparison of the Asian and Latin American Experiences Yin-Wong Cheung and Hiro Ito -- 3.1. Introduction -- 3.2. A Brief Review on the Determinants of International Reserves -- 3.3. Demand for International Reserves -- 3.3.1. Model Specifications -- 3.3.2. Estimation Results -- 3.4. Comparison Between Asia and Latin America -- 3.4.1. Developed or Developing Economies -- 3.4.2. An Asian Phenomenon? -- 3.5. Concluding Remarks -- References -- 4. The Domestic Financial Consequences of Reserve Accumulation: Some Evidence from Asia Corrinne Ho and Robert N. McCauley -- 4.1. Introduction -- 4.2. Monetary Control -- 4.2.1. The Technical Sterilization Problem -- 4.2.2. Has Sterilized Intervention Compromised Inflation Objectives? -- 4.2.3. Credit Growth -- 4.3. Central Bank Profitability and Balance Sheet Risk.

4.3.1. Currency Mismatch and Exposure to Valuation Losses -- 4.3.2. The Quasi-fiscal Cost of Financing and Holding Reserves -- 4.4. Concluding Remarks -- Appendix A Case-studies of Exchange Rate Valuation Changes of Reserves -- A.1. Taiwan in the Late 1980s -- A.2. Korea in 2003-2006 -- Appendix B Estimating the Costs of Reserve Accumulation -- B.1. Flow Cost: The Cost of Sterilization Operations Over a Period of Time -- B.2. Stock Cost: The Financial Opportunity Cost of Holding a Stock of Foreign Reserves -- References -- III. Capital Flows, Spillovers, and Interdependence -- 5. Macroeconomic Conditions and Capital Flows in Emerging East Asian Economies Alex Mandilaras and Helen Popper -- 5.1. Introduction -- 5.2. Recent Capital Flows -- 5.3. Macroeconomic Conditions -- 5.4. Econometric Approaches and Evidence -- 5.5. Concluding Remarks -- References -- 6. Measuring Spillover and Convergence Effects in the Asia-Pacific Region Andrew Hughes Hallett and Christian Richter -- 6.1. Introduction -- 6.2. A Technical Introduction to Time-Frequency Analysis -- 6.2.1. Time-Varying Spectra -- 6.2.2. Time-Varying Cross-Spectra -- 6.3. Single Spectra -- 6.3.1. Individual Spectra for the Core Asian Economies -- 6.3.2. Commentary on Results -- 6.4. Increasing Coherence between Asian Economic Cycles? -- 6.4.1. Coherence and Spillovers between the U.S. and China -- 6.4.2. Coherence and Gains between the U.S. and Japan -- 6.4.3. Coherences and Gains between China and Japan -- 6.5. Concluding Remarks -- References -- 7. Trade Interdependence and Exchange Rate Coordination in East Asia Willem Thorbecke -- 7.1. Introduction -- 7.2. Global Triangular Trading Patterns in East Asia3 -- 7.2.1. Intermediate Goods Trade in East Asia -- 7.2.2. China's Role in the Global Triangular Trading Patterns.

7.3. The Effect of Changes in Income in the Rest of theWorld on China's Exports6 -- 7.3.1. Data and Methodology -- 7.3.2. Results -- 7.4. Estimating the Effects of Exchange Rate Changes on Triangular Trading Patterns11 -- 7.4.1. Data and methodology -- 7.4.2. Results -- 7.5. Concluding Remarks -- References -- IV. Regional Exchange Rate, Monetary and Financial Cooperation -- 8. Regional Monetary Coordination in East Asia Eiji Ogawa -- 8.1. Introduction -- 8.2. Coordination Failure in Exchange Rate Policy among APT Countries -- 8.3. Monetary Cooperation in East Asia: Current Situation andWay Forward -- 8.3.1. Current Situation: Need for Cooperation -- 8.3.2. Way Forward: Multi-Step Approach to Regional Monetary Cooperation -- 8.4. Concluding Remarks -- Appendix A -- Creating an Asian Monetary Unit (AMU) and AMU Deviation Indicators -- References -- 9. Monetary and Financial Cooperation Among Central Banks in East Asia and the Pacific Hans Genberg and Dong He -- 9.1. Introduction -- 9.2. Revealed Preferences for Monetary Policy Objectives -- 9.2.1. Central Bank Statements -- 9.2.2. Characterization of Exchange Rate Movements -- 9.2.3. Evidence from Policy Reaction Functions -- 9.3. Pitfalls with Exchange Rate Coordination -- 9.3.1. What is the Nominal Anchor in a System Based on Coordinated Exchange Rate Policies? -- 9.3.2. Will Exchange Rate Coordination Increase the Risk of Speculative Attacks? -- 9.4. Exchange Rate Policy and the Export Sector -- 9.4.1. Exchange Rate Policy, Openness, and Economic Growth14 -- 9.4.2. Implications of Regional Trade Integration for Exchange Rate Policy -- 9.4.3. Political Pressure and Exchange Rate Policy -- 9.5. Concluding Remarks: Implications for Cooperation -- 9.5.1. Setting of Policy Instruments Need Not Be Coordinated -- 9.5.2. Harmonization of Goals and Consultation on Institution Building -- References.

10. Economic and Financial Integration in East Asia: Lessons from the European Monetary Union Dominick Salvatore -- 10.1. Introduction -- 10.2. Economic and Monetary Integration in Europe before the Euro -- 10.2.1. The Creation and Expansion of the European Union -- 10.2.2. The Move Toward Monetary Integration: The European Monetary System -- 10.3. TheTransition to Monetary Union and the Creation of the Euro -- 10.3.1. The Maastricht Treaty -- 10.3.2. The Creation of the Euro -- 10.3.3. The European Central Bank and the Common Monetary Policy -- 10.4. Effect of the Euro on Stability and Growth of the EMU -- 10.4.1. The Relative Growth of the EMU -- 10.4.2. EMU Monetary and Fiscal Policies for Stability and Growth -- 10.4.3. EMU Trade Openness -- 10.4.4. Conclusion -- 10.5. Lessons from the EMU for Asia -- 10.5.1. Is East Asia an Optimum Currency Area? -- 10.5.2. Could Monetary IntegrationWorkWell in East Asia? -- 10.5.3. Moving Toward Monetary Integration in East Asia -- 10.6. Concluding Remarks -- References -- Index.