What Is an Exchange or Exchange Rates under the East Asian Dollar Standard

What Is an Exchange?: The Automation, Management, and Regulation of Financial Markets

Author: Ruben Le

The existence and nature of exchanges used not to be controversial; they were easily identified and characterized. New technology, however, has led to the development of new exchanges and trading systems, posing problems for those concerned with the regulation of trading markets. Ruben Lee examines the question of what an exchange is, using arguments from both financial economics and law, and sets out a view of how exchanges might be regulated.

What People Are Saying

Robin Fox
An intellectual tour de force of the various issues surrounding the business,and regulation, of financial markets and professionals.
—Brandon Becker, Georgetown University Law Center and Partner, Wilmer, Cutler & Pickering

Table of Contents:

	List of Abbreviations
1	Introduction	1
2	Governance	8
3	Governance: Case Studies	34
4	Competition and Cooperation	49
5	Cooperation: Case Studies	67
6	Information	97
7	Classification and Market Structure: Law and Regulation	117
8	Information: Law and Regulation	140
9	Governance: Law and Regulation	190
10	Information: Economics	215
11	Information and Competition: Policy	250
12	Classification and Governance: Policy	279
App. 1	Trading Systems	317
	App. 2: Definitions	322
	Notes	324
	Authorities	356
	Cases	358
	References	361
	Index	395

Go to: Die Sechs Disziplinen des Durchbruchs, der Erfährt: Wie man das Lernen und die Entwicklung in Geschäftsergebnisse verwandelt

Exchange Rates under the East Asian Dollar Standard: Living with Conflicted Virtue

Author: Ronald I McKinnon

The increasingly integrated economies of East Asia--China, Hong Kong, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand--face the dilemma of how to achieve exchange-rate security in the absence of a unifying "Asian euro." The US dollar has become the region's dominant intraregional trading currency as well as the monetary anchor to which East Asian economies informally peg their currencies. In this timely and original analysis of the benefits and risks of an East Asian dollar standard, Ronald McKinnon takes issue with the conventional view that urges flexible exchange rates on financially fragile economies. He argues instead that East Asian countries should coordinate their policies to keep their exchange rates stable against the dollar.

McKinnon develops a conceptual framework to show where the conventional wisdom on exchange rates has gone wrong. Pressure on the "virtuous" high-saving dollar-creditor East Asian nations to appreciate their currencies leads to a "conflicted" choice between a possible deflationary slump if they do appreciate and threatened trade sanctions if they do not. Analyzing interactions among the East Asian economies, McKinnon explains the rationale, and the need, for greater exchange-rate security in the region, pointing to the soft-dollar pegs adopted by these nations as steps in the right direction. He suggests that the dollar standard in East Asia could be rationalized through collective action by national governments and considers the effect of American monetary and trade policies on the East Asian economy.