Arbeitspapier

Effects of Quantitative Easing on Asia: Capital Flows and Financial Markets

This paper studies the effects of the United States' (US) quantitative easing on Asia by examining capital flows and financial markets. After the global financial crisis, Asian economies with more open and developed capital markets experienced greater swings in capital inflows. In particular, large capital flows were manifest more in portfolio investment and other investment such as bank loans than in foreign direct investment. Empirical analysis shows quantitative easing, in particular the first round, significantly contributed to the rebounding of capital inflows to the region after the onset of the crisis by lowering domestic yield rates as well as credit default swap premiums. Although the currency value responses differed across countries, it appears that economies with stable exchange rates roughly coincide with those in which housing prices have been rising, suggesting that monetary easing of advanced countries have affected Asian countries through either appreciation of currency values or increases in the prices of housing.

Language
Englisch

Bibliographic citation
Series: ADB Economics Working Paper Series ; No. 350

Classification
Wirtschaft
Monetary Policy
Central Banks and Their Policies
Subject
quantitative easing
monetary policy
Asian impacts

Event
Geistige Schöpfung
(who)
Cho, Dongchul
Rhee, Changyong
Event
Veröffentlichung
(who)
Asian Development Bank (ADB)
(where)
Manila
(when)
2013

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Cho, Dongchul
  • Rhee, Changyong
  • Asian Development Bank (ADB)

Time of origin

  • 2013

Other Objects (12)