Impact of Monetary Policy Uncertainty on Asian Exchange Rates
Park, Donghyun; Tian, Shu; Qureshi, Irfan; Villaruel, Mai Lin | July 2019
Abstract
The interest rate hikes of the Federal Reserve System (the Fed) of the United States (US) adversely affected financial stability in emerging markets in 2018. In response to robust economic growth, tightening labor market conditions, and emerging inflationary pressures in the US, the Fed raised the federal funds rate four times by a combined 100 basis points in 2018. The concerted US monetary policy normalization contributed to a general strengthening of the US dollar and risk aversion toward emerging markets. As a result, vulnerable emerging markets such as Argentina and Turkey suffered sharp depreciations of their currencies, triggering concerns about widespread instability in emerging markets. Some Asian currencies, most notably the Indian rupee and rupiah, also fell. The currency depreciations underlined the large impact of US monetary policy on exchange rates of emerging markets.
Citation
Park, Donghyun; Tian, Shu; Qureshi, Irfan; Villaruel, Mai Lin. 2019. Impact of Monetary Policy Uncertainty on Asian Exchange Rates. © Asian Development Bank. http://hdl.handle.net/11540/10931. License: CC BY 3.0 IGO.PDF ISBN
978-92-9261-679-3
Print ISBN
978-92-9261-678-6
ISSN
2071-7202 (print)
2218-2675 (electronic)
Keywords
Economic Crisis
Economic Efficiency
Economic Policies
Financial Stability
Financial Management System
Financial Restructuring
Capital Market Development
Market Development
Economics
Erosion
International Economics
Macroeconomic
Macroeconomic Analysis
Performance Evaluation
Impact Evaluation
Foreign and Domestic Financing
Foreign Direct Investment
Economies in transition
Economic agreements
Social condition
Economic dependence
Economic assistance
Crisis
Taxation
Public Accounting
National Budget
Municipal Bonds
Local Government
Local Taxes
International Monetary Relations
International Financial Market
Multilateral Financial Institutions
Economic Recession
Market
Crisis
Economic indicators
Growth models
Gross domestic product
Macroeconomics
Economic forecast
Business Financing
Investment Requirements
Corruption
Money laundering
Financial crisis
Labor economics
Regional economics
Business recessions
Multilateral development banks
Regulatory reform
Capital
Exports
Economic development projects
Economic policy
Economic forecasting
Investment Requirements
Banks
International banks and banking
Capital movements
Central banks and banking
Bills of exchange
Swaps
Banks and banking
Financial crisis
Credit control
Credit allocation
Capital market
International liquidity
Liquidity
Exchange rate
Use tax
Taxing power
State of taxation
Tax-sales
Tax revenue estimating
Tax planning
Spendings tax
Special assessments
Tax administration and procedure
Sales tax
Real property and taxation
Progressive taxation
Effect of taxation on land use
Effect of taxation on labor supply
Intergovernmental tax relations
Inheritance and transfer tax
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