IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-16-6827-2_4.html
   My bibliography  Save this book chapter

Exchange Rate Policy and Capital Flow Management

In: Central Bank Policy Mix: Issues, Challenges, and Policy Responses

Author

Listed:
  • Solikin M. Juhro

    (Bank Indonesia)

  • Reza Y. Siregar

    (Coordinating Ministry for Economic Affairs)

  • Budi Trisnanto

    (Bank Indonesia)

Abstract

ThisExchange rate policy chapter discusses the relationship between exchange rate and foreign capital flow managementCapital flow management, as influenced by the increasingly integrated nature of the global economy and finance. From the central bank's perspective, a strategy mix composed of interest rate and exchange rate stabilization policy alongside capital flow managementCapital flow management has the potential to provide better results for monetary and financial system stability. Interest rate policy still needs to be directed towards achieving price stability, while exchange rate stabilization policy and capital flow managementCapital flow management are aimed at maintaining external and internal stability. This chapter also sheds light on the closeness of the relationship between monetary stabilityMonetary Stability and financial system stability. The magnitude of changes in foreign capital flows not only threatens macroeconomic stability, but also creates pressures on financial system stability, such as liquidity and bank credit growth. In light of this, the integration of monetary policyMonetary policy and macroprudentialMacroprudential policy is increasingly important.

Suggested Citation

  • Solikin M. Juhro & Reza Y. Siregar & Budi Trisnanto, 2022. "Exchange Rate Policy and Capital Flow Management," Springer Books, in: Perry Warjiyo & Solikin M. Juhro (ed.), Central Bank Policy Mix: Issues, Challenges, and Policy Responses, chapter 0, pages 51-72, Springer.
    • Handle: RePEc:spr:sprchp:978-981-16-6827-2_4
    DOI: 10.1007/978-981-16-6827-2_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Veysel INAL & Serif CANBAY & Mustafa KIRCA, 2023. "Determinants of Food Prices in Türkiye: Fourier Engle-Granger Cointegration Test," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 133-156, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-981-16-6827-2_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.