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Sources of Variations Between The Inflation Rates of Korea, Thailand and Indonesia During The Post-1997 Crisis

Author

Listed:
  • Gulasekaran Rajaguru

    () (Department of Economics, National University of Singapore.)

  • Reza Siregar

    () (School of Economics, University of Adelaide, Australia)

Abstract

Despite the large number of studies done on the recent East Asian crisis, hardly any of them has however simultaneously evaluated the roots of the inflationary pressures and unearthed the sources of sharp variations between the inflation rates of the various crisis-effected economies. To help fill in this gap, our paper examines and contrasts the sources of inflation in Thailand, Indonesia and South Korea during the period of 1985 to 2001. A number of potential sources of inflation will be considered in the study. But this study pays a particular attention to the possible roles of the monetary aggregates and the exchange rate uncertainties in encapsulating the rise in the inflationary pressures and the variations between the inflation rates experienced by these economies during the 1997 crisis.

Suggested Citation

  • Gulasekaran Rajaguru & Reza Siregar, 2002. "Sources of Variations Between The Inflation Rates of Korea, Thailand and Indonesia During The Post-1997 Crisis," Centre for International Economic Studies Working Papers 2002-29, University of Adelaide, Centre for International Economic Studies.
  • Handle: RePEc:adl:cieswp:2002-29
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Cavoli, Tony, 2009. "Is fear of floating justified?: The East Asia experience," Journal of Policy Modeling, Elsevier, vol. 31(1), pages 1-16.
    2. Thi Kim Cuc Nguyen & Reza Yamora Siregar, 2013. "Inflationary Implication of Gold Price in Vietnam," CAMA Working Papers 2013-20, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    3. Siwei Goo & Reza Siregar, 2009. "Economic Shocks And Exchange Rate As A Shock Absorber In Indonesia And Thailand," Staff Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number sp72, April.
    4. Enrico Tanuwidjaja & Choy Keen Meng, 2005. "Central Bank Credibility and Monetary Policy: Evidence from Small Scale Macroeconomic Model of Indonesia," SCAPE Policy Research Working Paper Series 0514, National University of Singapore, Department of Economics, SCAPE.
    5. International Monetary Fund, 2006. "Indonesia; Selected Issues," IMF Staff Country Reports 06/318, International Monetary Fund.
    6. Akhand Akhtar Hossain, 2015. "The Evolution of Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 14611, June.
    7. Tanuwidjaja, Enrico & Choy, Keen Meng, 2006. "Central bank credibility and monetary policy in Indonesia," Journal of Policy Modeling, Elsevier, vol. 28(9), pages 1011-1022, December.
    8. Hossain, Akhand Akhtar, 2009. "Structural change in the export demand function for Indonesia: Estimation, analysis and policy implications," Journal of Policy Modeling, Elsevier, vol. 31(2), pages 260-271.
    9. Wimanda, Rizki E. & Turner, Paul M. & Hall, Maximilian J.B., 2011. "Expectations and the inertia of inflation: The case of Indonesia," Journal of Policy Modeling, Elsevier, vol. 33(3), pages 426-438, May.

    More about this item

    Keywords

    Inflation; Base Money; Expected Depreciation; Exchange Rate Policy; East Asian Financial Crisis;

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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