The effectiveness of monetary policy transmission under capital inflows [electronic resource] : evidence from Asia / Sonali Jain-Chandra and D. Filiz Unsal.

By:

Jain-Chandra, Sonali, 1975-

Contributor(s):

Material type: Text

TextSeries: IMF working paper ; WP/12/265.Publication details: [Washington, D.C.] : International Monetary Fund, c2012.Description: 1 online resource (19 p.) : col. illISBN:

9781475521955 (electronic bk.)
1475521952 (electronic bk.)

Subject(s):

Genre/Form:

Electronic books.

DDC classification:

332.095 23

LOC classification:

HG1202

Online resources:

EBSCOhost

Summary: "The effectiveness of the monetary policy transmission mechanism in open economies could be impaired if interest rates are driven primarily by global factors, especially during periods of large capital inflows. The main objective of this paper is to assess whether this is true for emerging Asia's economies. Using a dynamic factor model and a structural vector auto-regression model, we show that long-term interest rates in Asia are indeed predominantly driven by global factors. However, monetary policy transmission mechanism remains effective in the region, as it operates predominantly through short-term interest rates. Nevertheless, the monetary transmission mechanism, though effective, is somewhat weaker in Asia during the periods of surges in capital inflows"--Abstract.

Holdings ( 1 )
Title notes ( 5 )

Holdings
Item type	Current library	Collection	Call number	Status	Date due	Barcode	Item holds
eBook	e-Library	EBSCO Business		Available

Total holds: 0

Title from PDF title page (IMF Web site, viewed Nov. 5, 2012).

"Asia and Pacific Department"--p. 2 of pdf.

"November 2012"--p. 2 of pdf.

"The effectiveness of the monetary policy transmission mechanism in open economies could be impaired if interest rates are driven primarily by global factors, especially during periods of large capital inflows. The main objective of this paper is to assess whether this is true for emerging Asia's economies. Using a dynamic factor model and a structural vector auto-regression model, we show that long-term interest rates in Asia are indeed predominantly driven by global factors. However, monetary policy transmission mechanism remains effective in the region, as it operates predominantly through short-term interest rates. Nevertheless, the monetary transmission mechanism, though effective, is somewhat weaker in Asia during the periods of surges in capital inflows"--Abstract.

Includes bibliographical references (p. 16-18).