| ID | 119205 |
| Title Proper | Capital mobility in East Asian countries is not so high |
| Other Title Information | examining the impact of sterilization on capital flows |
| Language | ENG |
| Author | Ying, Yung-Hsiang ; Kuan, Chung-Ming ; Tung, Chris Y ; Chang, Koyin |
| Publication | 2013. |
| Summary / Abstract (Note) | This paper examines how international capital mobility can be affected by sterilization activities for seven East Asian economies. We develop a model that shows how sterilization measures by a central bank can lead to a reduction in a country's capital mobility. Using data from 1980 to 2006, we then derive sterilization intensities and capital mobility estimates for our countries, and discover that conventional measures overstate the degree of capital mobility due to their failure to adjust for sterilization actions. Our findings are important for policy makers since using our modified estimates will help to better understand the magnitude of capital mobility when central banks exercise sterilization to dampen the effect of capital inflows. |
| `In' analytical Note | China Economic Review Vol. 24, No.1; Mar 2013: p. 55-64 |
| Journal Source | China Economic Review Vol. 24, No.1; Mar 2013: p. 55-64 |
| Key Words | Capital Mobility ; Sterilization ; Capital Movement |