Posted

January 14, 2014 01:19:01 PM

Date

2013-10

Author

Dong He and Robert N McCauley

Affiliation

Hong Kong Monetary Authority and Hong Kong Institute for Monetary Research, and Bank for International Settlements

Title

Transmitting Global Liquidity to East Asia: Policy Rates, Bond Yields, Currencies and Dollar Credit

Summary /
Abstract

We review extant work on the transmission of monetary policy, both conventional and unconventional, of the major advanced economies to East Asia through monetary policy reactions, integrated bond markets and induced currency appreciation. We present new results on the growth of foreign currency credit, especially US dollar credit, as a transmission mechanism. Restrained growth of dollar credit in Korea contrasts with very rapid growth on the Chinese mainland and in Hong Kong SAR.

Keywords

Global liquidity, East Asia, policy rates, bond yields, currencies, dollar credit

URL

http://www.hkimr.org/uploads/publication/360/wp-no-15_2013-final-.pdf

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