Effectiveness of High Interest Rate Policy on Exchange Rates: A Reexamination of the Asian Financial Crisis
One of the most controversial issues in the aftermath of the Asian financial crisis has been the appropriate response of monetary policy to a sharp decline in the value of some currencies. In this paper, we empirically examine the effects on Asian exchange rates of sharply higher interest rates during the Asian financial crisis. Taking account of the currency contagion effect, our results indicate that sharply higher interest rates helped to support the exchange rates of South Korea, the...[Show more]
|Collections||ANU Research Publications|
|Source:||Journal of Applied Mathematics and Decision Sciences|
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