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Monetary Transmission of Global Imbalances in Asian Countries
Author:
Mr. Il Houng Lee
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and
Woon Gyu Choinull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2010: Issue 214
Language:
English
Publication Date:
01 Sep 2010
DOI:
https://doi.org/10.5089/9781455205455.001
ISBN:
9781455205455
ISSN:
1018-5941
Pages:
26
Keywords:
WP; EMD Asia; monetary policy; global imbalance; monetary transmission; net saving rates; dynamic panel; investment rate; output growth; adv Asia; saving-investment gap; rate regression; Production growth; Inflation; Capital flows; Output gap; Exchange rates; Asia and Pacific; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2010: Issue 214