Devaluation: the Asian experience

Date

1995-03

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Abstract

This thesis looks at the experience of some Asian countries that have resorted to devaluation, namely: Thailand, Indonesia, and the Philippines. The significance of the difference of each countries' macroeconomic performance with the performance of their comparison group is tested. The trends in the consumer price index, gross domestic product, exports, imports, balance of trade, and balance of payments are determined. The desirability of devaluation as a stabilization ptilicy is concluded using the findings of Steven Kamin, an economist of the International Finance Division of the Federal Reserve Board, as measure. Kamin found that devaluation causes short run improvements in the balance of trade, and a long run improvement in the balance of payments, and a significant initial positive growth of exports. He also concluded the absence of marked inflation.

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Keywords

Devaluation, Asian experience

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