Post-crisis monetary and exchange rate policies in Indonesia, Malaysia and Thailands
This paper surveys the post-crisis monetary and exchange rate policies of Indonesia, Thailand and Malaysia. Malaysia has pegged the ringgit while Indonesia and Thailand have adopted heavily managed exchange rates. Under their IMF programs, Thailand and Indonesia set base money targets, but Thailand has moved, and Indonesia is now moving, to inflation targeting, using interest rates as the short-term instrument. Malaysia also sets interest rates. The ability of the three central banks to set interest rates and also pursue an exchange rate target with an interest rate target has been bolstered by restrictions on the internationalisation of the domestic currency. The three central banks have also had to sterilise the monetary effects of their foreign exchange interventions. It is argued that inflation targeting is now a good policy choice, but that a more freely floating exchange rate would be better than sterilisation of balance of payments surpluses or deficits.
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Volume (Year): 41 (2005)
Issue (Month): 2 ()
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References listed on IDEAS
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.:
- Ross McLeod, 2003.
"Towards improved monetary policy in Indonesia,"
Bulletin of Indonesian Economic Studies,
Taylor & Francis Journals, vol. 39(3), pages 303-324.
- Ross McLeod, 2002. "Toward Improved Monetary Policy in Indonesia," Departmental Working Papers 2002-10, The Australian National University, Arndt-Corden Department of Economics.
- Prema-chandra Athukorala, 2001. "Crisis and Recovery in Malaysia," Books, Edward Elgar Publishing, number 2340, July. Full references (including those not matched with items on IDEAS)