Monetary Transmission of Global Imbalances in Asian Countries

27 Pages Posted: 1 Feb 2011

See all articles by Il Houng Lee

Il Houng Lee

International Monetary Fund (IMF)

Woon Gyu Choi

affiliation not provided to SSRN

Date Written: September 2010

Abstract

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.

Keywords: Asia, Balance of trade, Capital flows, Economic integration, Economic models, Export competitiveness, Globalization, Inflation, Monetary policy, Production growth, Reserves, Savings

Suggested Citation

Lee, Il Houng and Choi, Woon Gyu, Monetary Transmission of Global Imbalances in Asian Countries (September 2010). Available at SSRN: https://ssrn.com/abstract=1750702 or http://dx.doi.org/10.2139/ssrn.1750702

Il Houng Lee (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Woon Gyu Choi

affiliation not provided to SSRN

No Address Available

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