Indeed, some Asian countries have kept their currencies undervalued in an effort to maintain external competitiveness, attract foreign direct investment and boost exports and growth. Dooley et al (2004) argue that the resulting accumulation of foreign reserves can be seen as collateral, which is being used for attracting foreign investment.
As an aside, the Reserve Bank decided to sponsor the production of a textbook on economic policy for the Journalists Training Organisation a year or so back. This textbook will be launched next week. It does not attempt to promote a single view of economic policy, and contains chapters written by a wide range of New Zealand economists and financial journalists.