Unconventional Central Bank Policies in Emerging Asia (Presentation Slides)
21 Pages Posted: 14 Jan 2020
Date Written: September 6, 2019
Targeting Inflation is well enshrined as a principal central bank objective, but other goals are also acknowledged to be important, notably financial stability. In small and highly open (both in terms of trade in goods and financial assets) economies, capital flows and exchange rate volatility can be important sources of macroeconomic and financial instability. Central bank policy is therefore conducted not only by using a short-term interest rate as in conventional Inflation Targeting, but also by using capital flow management policies and interventions in the foreign exchange market.
Keywords: Capital flow management, Emerging Markets, inflation targeting, foreign exchange market intervention
JEL Classification: F32, F33, G15
Suggested Citation: Suggested Citation