Monetary Transmission of Global Imbalances in Asian Countries

The paper explores the linkages between the global and domestic monetary gaps, and estimates the effects of monetary gaps on output growth, inflation, and net saving rates using panel data for 20 Asian countries for 1980-2008. We find a significant pass-through of the global monetary gap to domestic...

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Bibliographic Details
Main Author: Lee, Il
Other Authors: Choi, Woon
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2010
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Monetary Transmission of Global Imbalances in Asian Countries  |c Il Lee, Woon Choi 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2010 
300 |a 26 pages 
651 4 |a United States 
653 |a Inflation 
653 |a Short-term Capital Movements 
653 |a Output gap 
653 |a Deflation 
653 |a Current Account Adjustment 
653 |a Production 
653 |a Balance of payments 
653 |a Long-term Capital Movements 
653 |a Currency 
653 |a Exports and Imports 
653 |a International economics 
653 |a Model Construction and Estimation 
653 |a Macroeconomics: Production 
653 |a Price Level 
653 |a Foreign Exchange 
653 |a Capital flows 
653 |a Prices 
653 |a Macroeconomics 
653 |a Capital movements 
653 |a Economic theory 
653 |a Exchange rates 
653 |a Monetary Policy 
653 |a Foreign exchange 
653 |a International Investment 
653 |a Production growth 
653 |a Production and Operations Management 
700 1 |a Choi, Woon 
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520 |a The paper explores the linkages between the global and domestic monetary gaps, and estimates the effects of monetary gaps on output growth, inflation, and net saving rates using panel data for 20 Asian countries for 1980-2008. We find a significant pass-through of the global monetary gap to domestic monetary gaps, which in turn affect output growth and inflation, in individual emerging market and developing countries in Asia. Notably, we provide evidence that the global monetary condition is partly responsible for the current account surplus in Asia. We also draw implications for monetary policy coordination for global rebalancing