LEADER 05364oam 22011054 450 001 9910779331203321 005 20230802005648.0 010 $a1-4755-1660-6 010 $a1-4755-7971-3 010 $a1-283-86686-2 010 $a1-4755-2195-2 035 $a(CKB)2550000000709421 035 $a(EBL)1607049 035 $a(SSID)ssj0000949400 035 $a(PQKBManifestationID)11512177 035 $a(PQKBTitleCode)TC0000949400 035 $a(PQKBWorkID)10996017 035 $a(PQKB)11511453 035 $a(MiAaPQ)EBC1607049 035 $a(Au-PeEL)EBL1607049 035 $a(CaPaEBR)ebr10635337 035 $a(CaONFJC)MIL417936 035 $a(OCoLC)870245014 035 $a(IMF)WPIEE2012265 035 $a(IMF)WPIEA2012265 035 $a(EXLCZ)992550000000709421 100 $a20020129d2012 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt 182 $cc 183 $acr 200 14$aThe Effectiveness of Monetary Policy Transmission Under Capital Inflows : $eEvidence from Asia /$fSonali Jain-Chandra, Filiz Unsal 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2012. 215 $a1 online resource (20 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/12/265 300 $aDescription based upon print version of record. 311 $a1-4755-2582-6 320 $aIncludes bibliographical references. 327 $aCover; Contents; I. Introduction; II. Methodological Considerations; A. Generalized Dynamic Factor Model; Figures; 1. Secondary Market Yield of 10-Year Government Bond; B. Structural Vector Autoregression; III. Are Local Bond Yields in Asia Driven by External or Domestic Factors?--Empirical Results; 2. The Estimated Common Factor and U.S. 10-Year Bond Yield and the VIX; 3. Contributions of U.S. 10-Year Yield and VIX to Estimated Common Factor; 4. Variance Decomposition of Domestic 10-Year Yield by Sources During 2005-10 327 $a5. Contribution of U.S. Long-Term Interest Rates to Variance of Domestic Yields by Maturity 6. Importance of U.S. Interest Rate and Capital Account Openness; IV. Which Interest Rates Matter More for Monetary Transmission Mechanism?; 7. Variance Decomposition of Industrial Production in Response to Shocks to Domestic Interest Rates; V. The Monetary Transmission Mechanism Under Large Capital Flows; 8. Short-Term Corporate Debt; VI. Conclusion; 9. Effect of Capital Flows on Monetary Transmission Mechanism; References 330 3 $aThe effectiveness of the monetary policy transmission mechanism in open economies could be impaired if interest rates are driven primarily by global factors, especially during periods of large capital inflows. The main objective of this paper is to assess whether this is true for emerging Asia?s economies. Using a dynamic factor model and a structural vector auto-regression model, we show that long-term interest rates in Asia are indeed predominantly driven by global factors. However, monetary policy transmission mechanism remains effective in the region, as it operates predominantly through short-term interest rates. Nevertheless, the monetary transmission mechanism, though effective, is somewhat weaker in Asia during the periods of surges in capital inflows. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2012/265 606 $aMonetary policy$zAsia 606 $aCapital movements$zAsia 606 $aBanks and Banking$2imf 606 $aExports and Imports$2imf 606 $aInterest Rates: Determination, Term Structure, and Effects$2imf 606 $aMonetary Policy$2imf 606 $aOpen Economy Macroeconomics$2imf 606 $aInternational Investment$2imf 606 $aLong-term Capital Movements$2imf 606 $aFinance$2imf 606 $aBanking$2imf 606 $aInternational economics$2imf 606 $aLong term interest rates$2imf 606 $aYield curve$2imf 606 $aCentral bank policy rate$2imf 606 $aShort term interest rates$2imf 606 $aCapital inflows$2imf 606 $aFinancial services$2imf 606 $aBalance of payments$2imf 606 $aInterest rates$2imf 606 $aCapital movements$2imf 607 $aUnited States$2imf 615 0$aMonetary policy 615 0$aCapital movements 615 7$aBanks and Banking 615 7$aExports and Imports 615 7$aInterest Rates: Determination, Term Structure, and Effects 615 7$aMonetary Policy 615 7$aOpen Economy Macroeconomics 615 7$aInternational Investment 615 7$aLong-term Capital Movements 615 7$aFinance 615 7$aBanking 615 7$aInternational economics 615 7$aLong term interest rates 615 7$aYield curve 615 7$aCentral bank policy rate 615 7$aShort term interest rates 615 7$aCapital inflows 615 7$aFinancial services 615 7$aBalance of payments 615 7$aInterest rates 615 7$aCapital movements 700 $aJain-Chandra$b Sonali$01552511 701 $aUnsal$b Filiz$01476615 712 02$aInternational Monetary Fund. 801 0$bDcWaIMF 906 $aBOOK 912 $a9910779331203321 996 $aThe Effectiveness of Monetary Policy Transmission Under Capital Inflows$93824722 997 $aUNINA