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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (742)	1/12/1998 11:08:00 PM
From: DMaA	Read Replies (2) \| Respond to of 9980

Thank you for your analysis. The current Asian crisis is a currency crisis. The prescription? I have an opinion but I realize it is niave so I won't burden the thread with it. My question was not about what is good for these countries. My question ( not at all rhetorical mind you ) was what effect would this particular prescription have on the USA if a lot of countries bought it. We get to ask "how much is it going to cost me?" don't we? Or don't we?

To: Stitch who wrote (742)	1/13/1998 1:02:00 PM
From: Geoff Nunn	Read Replies (1) \| Respond to of 9980

Stitch, I found your discussion of pegged exchange rates in S. Korea, Thailand, et al,, and the counter-productive efforts of these countries to maintain pegging after the currencies had become overvalued, very illuminating. Thank you. There's one thing that puzzles me. Japan seems to have the same reluctance to allow its currency to depreciate the countries you mentioned do. When the yen fell to 130 per dollar not long ago, the Japanese MOF issued a statement saying it had fallen enough. Japan's situation is very different from the rest of Asia. The Japanese do not hold large amounts of dollar denominated debt. What they do have, of course, are dollar assets(U.S. govt bonds) in abundance. Japan also doesn't have a current acct deficit to worry about. Therefore, why do you suppose the Japanese are opposed to a weaker yen? Do you agree with me that Japan is against a weaker yen? Any thoughts you care to express would be appreciated. Geoff