Arbeitspapier
Limits of monetary policy autonomy by East Asian debtor central banks
Due to buoyant capital inflows East Asian central banks with exchange rate targets accumulate foreign reserves and thereby increase surplus liquidity. East Asian central banks with more flexible exchange rate regimes also face surplus liquidity that mainly emanates from past accumulation of foreign reserves. We show based on an augmented Barro-Gordon-type central bank loss function that in both cases surplus liquidity limits monetary policy autonomy. In case of fixed exchange rates East Asian central banks can escape from the impossible trinity and gain monetary policy autonomy by using non-market-based sterilization which leads to financial sector distortions. In a flexible exchange rate regime monetary policy autonomy can be gained without financial sector distortions by using market-based sterilization. As central banks face substantial sterilization costs as well as revaluation losses on foreign reserves, however, monetary policy autonomy is eroded.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 3742
- Klassifikation
-
Wirtschaft
Monetary Policy
Central Banks and Their Policies
Foreign Exchange
- Thema
-
debtor central banks
monetary policy autonomy
sterilization
exchange rate regime
East Asia
Geldpolitik
Autonomie
Zentralbank
Währungsreserven
Gesamtwirtschaftliche Liquidität
Wechselkurssystem
Ostasien
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Löffler, Axel
Schnabl, Gunther
Schobert, Franziska
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Löffler, Axel
- Schnabl, Gunther
- Schobert, Franziska
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2012
Ähnliche Objekte (12)
Limits of monetary policy autonomy and exchange rate flexibility by East Asian central banks
Limits of Monetary Policy Autonomy and Exchange Rate Flexibility by East Asian Central Banks
Monetary Policy Reform in a World of Central Banks
(De)Stabilizing exchange rate strategies in East Asian monetary and economic integration
The evolution of the East Asian currency baskets: still undisclosed and changing
The Failure of ECB Monetary Policy from a Mises-Hayek Perspective
Monetary policy and wandering overinvestment cycles in East Asia and Europe
Inter-Temporal Savings, Current Account Dynamics and Asymmetric Shocks in a Heterogeneous European Monetary Union
70 years after the German currency and economic reform: The monetary, economic and political order in Europe is disturbed
Monetary Policy, Inequality and Political Instability
Monetary policy operations of debtor central banks in MENA countries
Monetary Policy Crisis Management as a Threat to Economic Order
Limits of monetary policy autonomy and exchange rate flexibility by East Asian central banks
Limits of Monetary Policy Autonomy and Exchange Rate Flexibility by East Asian Central Banks
Monetary Policy Reform in a World of Central Banks
(De)Stabilizing exchange rate strategies in East Asian monetary and economic integration
The evolution of the East Asian currency baskets: still undisclosed and changing
The Failure of ECB Monetary Policy from a Mises-Hayek Perspective
Monetary policy and wandering overinvestment cycles in East Asia and Europe
Inter-Temporal Savings, Current Account Dynamics and Asymmetric Shocks in a Heterogeneous European Monetary Union
70 years after the German currency and economic reform: The monetary, economic and political order in Europe is disturbed
Monetary Policy, Inequality and Political Instability
Monetary policy operations of debtor central banks in MENA countries
Monetary Policy Crisis Management as a Threat to Economic Order
Limits of monetary policy autonomy and exchange rate flexibility by East Asian central banks
Limits of Monetary Policy Autonomy and Exchange Rate Flexibility by East Asian Central Banks
Monetary Policy Reform in a World of Central Banks
(De)Stabilizing exchange rate strategies in East Asian monetary and economic integration
The evolution of the East Asian currency baskets: still undisclosed and changing
The Failure of ECB Monetary Policy from a Mises-Hayek Perspective
Monetary policy and wandering overinvestment cycles in East Asia and Europe
Inter-Temporal Savings, Current Account Dynamics and Asymmetric Shocks in a Heterogeneous European Monetary Union
70 years after the German currency and economic reform: The monetary, economic and political order in Europe is disturbed
Monetary Policy, Inequality and Political Instability
Monetary policy operations of debtor central banks in MENA countries