Author : Jang-Yung Lee
Publisher : International Monetary Fund
Page : 32 pages
File Size : 34,89 MB
Release : 1997-03-24
Category : Business & Economics
ISBN :
Surging capital inflows can be something of a double-edged sword, inflicting rather less welcome and destabilizing side effects, including a tendency for the local currency to gain in value, undermining the competitiveness of export industries.
Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 10 pages
File Size : 17,6 MB
Release : 1990-01-01
Category : Business & Economics
ISBN : 1451924690
The paper argues that the sterilization of capital inflows at the start of a price-stabilization program may give rise to future pressures to discontinue the program as a result of the unduly high debt-service burden that the sterilization policy may generate.
Author : Mr.Jeffrey A. Frankel
Publisher : International Monetary Fund
Page : 36 pages
File Size : 24,93 MB
Release : 1994-12-01
Category : Business & Economics
ISBN : 1451857624
Some countries undergoing exchange-rate-based stabilization and financial liberalization in Latin America, Asia and elsewhere have faced large capital inflows since 1991. Many have tried to sterilize the reserve inflows. Calvo, Leiderman, and Reinhart argue essentially that sterilization is more difficult than generally realized, due to the interest costs on sterilization bonds. Reisen argues essentially that sterilization is easier than generally believed. This paper reviews the issues in the simplest textbook model and concludes that local interest rates are not likely to rise if the source of the disturbance is an exogenous capital inflow, but will rise if the disturbance is an increase in money demand or an increase in exports.
Author : Liliana Noelia Hernández Leyva
Publisher :
Page : 186 pages
File Size : 41,34 MB
Release : 2001
Category : Balance of payments
ISBN :
Author : Mr.Pierre L. Siklos
Publisher : International Monetary Fund
Page : 36 pages
File Size : 36,63 MB
Release : 1996-08-01
Category : Business & Economics
ISBN : 1451850832
This paper compares Hungary’s experience with sterilization with that of other capital inflow episodes. The study focuses on the short-run impact of sterilization on monetary policy. The empirical data indicate that sterilized interventions by the National Bank of Hungary (NBH) were not significant until mid-1994, sometime after the return to power of the former Communist leaders. Thus, in the second half of 1994, the NBH began to demonstrate more firmly its independence by tightening monetary policy. By the beginning of 1995, the direction of fiscal policy had begun to show consonance with the overall aims of monetary policy.
Author : Mark M. Spiegel
Publisher :
Page : 58 pages
File Size : 28,86 MB
Release : 1995
Category : Banks and banking
ISBN :
Author : Jang-Yung Lee
Publisher : International Monetary Fund
Page : 66 pages
File Size : 41,73 MB
Release : 1996-05-01
Category : Business & Economics
ISBN : 1451847343
This paper seeks to extend discussion of monetary policy instruments to the situation of a country faced with major capital inflows when the process of domestic financial liberalization is incomplete. It briefly summarizes the recent usage of traditional monetary instruments, discusses the practical limits to classic sterilization measures as well as the pros and cons of using other supplementary measures including tax-based controls on capital inflows. It also examines the efficacy of such measures in Chile, Colombia, Indonesia, Korea, Spain, and Thailand. The conclusion is that, for a time and as a transitional measure, a country may find it opportune to supplement the traditional instruments with certain “belt and braces” measures including, in some instances, indirect (tax-based) capital controls.
Author : Ms.Ratna Sahay
Publisher : International Monetary Fund
Page : 48 pages
File Size : 14,64 MB
Release : 1995-06-01
Category : Business & Economics
ISBN : 1451847742
This paper examines the nature and composition of capital flows in selected countries in Central and Eastern Europe during 1987–93. The data show that there was a remarkable turnaround in the capital account in 1992–93. This improvement was accompanied by widening current account deficits, an increase in real consumption, and real exchange rate appreciation. In light of these developments, the paper discusses the main macroeconomic concerns raised by capital inflows and lays out the principal policy options relevant for the transition economies.
Author : Kenneth Kletzer
Publisher :
Page : 42 pages
File Size : 23,13 MB
Release : 1999
Category : Capital movements
ISBN :
Author : Tony Cavoli
Publisher :
Page : 0 pages
File Size : 44,41 MB
Release : 2017
Category :
ISBN :
This paper derives a time-varying sterilization coefficient to examine those factors that determine the extent to which central banks might engage in monetary sterilization. There appear to be good reasons to do so: Sterilization neutralizes the monetary impact of reserve accumulation, which is an endogenous consequence of sustained capital inflows under some degree of management of exchange rates. A pooled sample of Asian economies incorporating Indonesia, Korea, Malaysia, the Philippines, Singapore and Thailand, for 1994-2012 is employed. We find that this method does help to directly uncover the determinants of sterilization, and while capital inflows do not appear to influence the sterilization directly, there is substantial evidence to suggest it does so indirectly--particularly through domestic interest rates.
