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Asia and Pacific > Thailand

You are looking at 1 - 3 of 3 items for :

  • Type: Journal Issue x
  • Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy x
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Cover IMF Working Papers
Re-Establishing Credible Nominal Anchors After a Financial Crisis: A Review of Recent Experience
Mr. Alessandro Zanello
,
Mr. Mark R. Stone
,
Mr. Christopher J. Jarvis
, and
Mr. Andrew Berg
This paper studies the question of how to achieve monetary policy credibility and price stability after a financial crisis. We draw stylized facts and conclusions from ten recent cases: Brazil (1999); Bulgaria (1997); Ecuador (2000); Indonesia (1997); Korea (1997); Malaysia (1997); Mexico (1994), Russia (1998); Thailand (1997); and Turkey (2001). Among our conclusions, highlights include: (i) monetary policy alone cannot stabilize; (ii) floats bring nominal stability quickly in countries with low pre-crisis inflation and hard pegs have been at least narrowly successful for countries in deeper disarray; (iii) in floats, early and determined tightening brings nominal stability and does not appear more costly for output; (iv) monetary aggregate targeting rarely serves as a coherent framework for floats; informal or full-fledged inflation targeting offers more promise.
Keywords:
WP; exchange rate; country; government; monetary policy credibility; aftermath; Financial crisis; monetary policy; nominal anchor; nominal stability; monetary policy action; sound monetary policy; limit inflation pass-through; exchange rate depreciation; monetary policy execution; monetary policy response; Exchange rates; Conventional peg; Inflation; Exchange rate arrangements; Floating exchange rates
Cover IMF Working Papers
Does Monetary Policy Stabilize the Exchange Rate Following a Currency Crisis?
Mr. Ilan Goldfajn
and
Mrs. Poonam Gupta
This paper provides evidence on the relationship between monetary policy and the exchange rate in the aftermath of currency crises. It analyzes a large data set of currency crises in 80 countries for the period 1980-98. The main question addressed is: Can monetary policy increase the probability of reversing a postcrisis undervaluation through nominal appreciation rather than higher inflation? We find that tight monetary policy facilitates the reversal of currency undervaluation through nominal appreciation. When the economy also faces a banking crisis, the results are not robust: depending on the specification, tight monetary policies may not have the same effect.
Keywords:
WP; tight monetary policy; undervaluation episode; term undervaluation; undervaluation case; currency crisis; Monetary policy; interest rates; inflation; exogenous monetary policy variable; currency undervaluation; undervaluation series; further undervaluation; Monetary tightening; Real exchange rates; Real interest rates; Exchange rates; Currency crises; Global
Cover IMF Working Papers
Monetary Policy in the Aftermath of Currency Crises: The Case of Asia
Mr. Taimur Baig
and
Mr. Ilan Goldfajn
This paper evaluates monetary policy and its relationship with the exchange rate in five Asian crisis countries. The findings are compared with previous currency crises in recent history. The paper finds no evidence of overly tight monetary policy in the Asian crisis countries in 1997 and early 1998, nor evidence that high interest rates led to weaker exchange rates. The usual trade-off between inflation and output when raising interest rates suggested the need for a softer monetary policy in the crisis countries to combat recession. However, in some countries, corporate balance sheet considerations called for the reversal of overly depreciated currencies through firmer monetary policy.
Keywords:
WP; interest rate; exchange rate; nominal interest rate; real interest rate; currency; monetary policy; interest rates; inflation; interest rate differential; nominal rate; expected return; interest rate note; interest rate data; overnight interest rate; interest rate increase; interest rate change; Exchange rates; Real interest rates; Currencies; Real exchange rates; Asia and Pacific