Transmitting global liquidity to East Asia: policy rates, bond yields, currencies and dollar credit
AbstractWe review extant work on the transmission of monetary policy, both conventional and unconventional, of the major advanced economies to East Asia through monetary policy reactions, integrated bond markets and induced currency appreciation. We present new results on the growth of foreign currency credit, especially US dollar credit, as a transmission mechanism. Restrained growth of dollar credit in Korea contrasts with very rapid growth on the Chinese mainland and in Hong Kong SAR.
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Bibliographic InfoPaper provided by Bank for International Settlements in its series BIS Working Papers with number 431.
Length: 38 pages
Date of creation: Oct 2013
Date of revision:
global liquidity; Taylor rule; monetary policy; bond markets; exchange rates; foreign currency debt; dollarisation; macroprudential policy; capital controls;
Other versions of this item:
- Dong He & Robert N McCauley, 2013. "Transmitting Global Liquidity to East Asia: Policy Rates, Bond Yields, Currencies and Dollar Credit," Working Papers 152013, Hong Kong Institute for Monetary Research.
- NEP-ALL-2013-12-29 (All new papers)
- NEP-MAC-2013-12-29 (Macroeconomics)
- NEP-MON-2013-12-29 (Monetary Economics)
- NEP-OPM-2013-12-29 (Open Economy Macroeconomic)
- NEP-SEA-2013-12-29 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Working Paper Series
2012-12, Federal Reserve Bank of San Francisco.
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