Monetary and Economic Studies Vol.20, No. S-1 / December 2002

Do Currency Regimes Matter in the 21st Century? An Overview

Hiroshi Fujiki, Akira Otani

This paper selectively reviews the recent literature on currency regimes in Europe, the Americas, and East Asia. We argue that, given the global interdependence among today's economies, currency regimes should always be evaluated in relation to monetary policy, fiscal policy, structural policies, and the working of financial markets. Thus, currency regimes do matter and are a relevant concern for policymakers.

Keywords: Bipolar view; Euro; Dollarization; Regional currency area

Views expressed in the paper are those of the authors and do not necessarily reflect those of the Bank of Japan or Institute for Monetary and Economic Studies.

Copyright © 2002 Bank of Japan All Rights Reserved.

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