Exchange Rate Arrangements of Transitional Economies and Their Implications for the Two Koreas

The success of economic reforms in a transitional economy is crucial in defining the nation’s role in the international community. Successful reform, however, is critically dependent upon what exchange rate arrangement the country may choose. China has adopted a de facto peg to the U.S. dollar while Russia chose a floating exchange rate arrangement. Cuba has been using a dual currency system while Vietnam used a combination of a peg to the U.S. dollar as well as a managed float. So what about North Korea?

In their paper, Drs. Jeong, Lee, and Mukherji search for an exchange rate regime suitable for North Korea to achieve its own economic reforms while also discussing the implications of such an arrangement for South Korea and North Korea’s international standing. Please join KEI for a lunchtime program at which these three authors, going where very few authors have dared, will present pros, cons, and the potential impact of alternative exchange rate arrangements for North Korea.

The presentation will coincide with the release of the paper and will be followed by an open discussion.