Skip to main content

Reserve accumulation and monetary sterilization in Singapore and Taiwan

Buy Article:

$51.63 plus tax (Refund Policy)

Abstract:

Asian economies have embraced the globalization of production, trade and capital flows. One dimension of contemporary globalization has been the heavy exchange rate management by, and rapid and massive stockpiling of, foreign exchange reserves in Asia. This article undertakes an empirical investigation to assess the extent of de facto sterilization and capital mobility in Singapore and Taiwan using quarterly data between 1990 and 2008. Our empirical results suggest that, since, 2001 both Singapore and Taiwan have a high degree of – but not perfect – de facto capital mobility. To date, this high-effective capital mobility has not undermined the ability of the central bank in either economies to sterilize their respective foreign exchange intervention but may make the process increasingly difficult over time.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840902984373

Affiliations: 1: China Academy of Public Finance and Public Policy, Central University of Finance and Economics, Beijing 100081, China 2: School of Public Policy, George Mason University, ArlingtonVA, USA

Publication date: June 1, 2011

More about this publication?
routledg/raef/2011/00000043/00000016/art00005
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more