Intervention,Sterilization,and Monetary Control--The empirics of East Asian countries.
In this paper we argue that complete modeling of foreign exchange intervention and sterilization policy. Using an impulse response function and variance decomposition derived from a four-variable vector autoregression model for East Asia, inclusive Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand etc. To explore how monetary authorities responded to exchange rates shock and foreign assets shock in East Asia. The analysis reveals that: (1) The Central Bank in Malaysia and in Singapore tended to use a ¡§leaning against the wind¡¨ exchange rate policy when facing domestic currency depreciation shock. Other countries tended to use a ¡§leaning with the wind¡¨ exchange rate policy. (2) Overall, the monetary base of the East Asia wasn¡¦t completely insulated from the foreign asset shock.
Advisor:none; none; none; none
School:National Sun Yat-Sen University
School Location:China - Taiwan
Source Type:Master's Thesis
Keywords:east asia sterilization intervention
Date of Publication:06/22/2006