Exchange Rate Regimes and Capital Account Convertibility: Evidence from East Asian Economics

2009 ◽  
Author(s):  
Dr.Anjala Kalsie
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Regimes ◽  
East Asian ◽  
Capital Account ◽  
Capital Account Convertibility ◽  
Account Convertibility

scholarly journals What Drives Stops in Cross-Border Bond Flows?

2019 ◽  
Vol 11 (14) ◽  
pp. 3763
Author(s):  
Seung-Gwan Baek ◽  
Chi-Young Song
Keyword(s):  
Exchange Rate ◽  
Financial Markets ◽  
Emerging Economies ◽  
Exchange Rate Regimes ◽  
Real Exchange Rates ◽  
Flexible Exchange Rate ◽  
Regression Method ◽  
Policy Implications ◽  
Capital Account ◽  
Cross Border

This paper empirically explores the determinants of stop episodes driven by bond flows using quarterly data from 38 economies over the period 1995–2011. Drastic bond-led stop episodes may greatly destabilize domestic financial markets and lead to financial crisis, threatening the sustainability of the financial system. Using the complementary log–log regression method, we found that bond-led stop episodes were associated with contagion and domestic factors rather than global factors. The results of our estimation showed that the probability of bond-led stop episodes was higher in countries with larger financial markets or with more overvalued real exchange rates. The main policy implications of our results, particularly for emerging economies, are that bond-led stop episodes were less likely to occur in countries with higher levels of institutional quality, lower capital account restrictions, or more flexible exchange-rate regimes. Finally, we found that capital control played a relatively greater role in predicting bond-led stops in emerging economies than did exchange-rate regimes.

Achieving capital account convertibility in China1

2011 ◽  
Vol 4 (1) ◽  
pp. 25-42 ◽  
Author(s):  
Yiping Huang ◽  
Xun Wang ◽  
Qin Gou ◽  
Daili Wang
Keyword(s):  
Capital Account ◽  
Capital Account Convertibility ◽  
Account Convertibility

Renminbi internationalisation will push ahead

2016 ◽  
Keyword(s):  
Direct Investment ◽  
Equity Markets ◽  
International Investment ◽  
Capital Account ◽  
Foreign Exchange Reserves ◽  
Content Type ◽  
Capital Account Convertibility ◽  
International Payment ◽  
Account Convertibility ◽  
International Investment Position

Subject Renminbi internationalisation. Significance The renminbi emerged from relative international obscurity to become the fifth most-used currency in international payments in just over a decade. Nevertheless, its international use as a currency of settlement or foreign exchange reserves remains small compared to the dollar and euro. Without full capital account convertibility, the benefits of its international usage have been restricted to exporters and offshore settlement centres, especially Hong Kong. Impacts Reform will raise renminbi quotas for portfolio investors, boost outward direct investment and develop China's international payment system. Incremental reforms will help rebalance China's net international investment position. In the longer term, internationalisation will benefit domestic bond and equity markets by increasing their depth and liquidity.

Capital Account Convertibility—Myth and Reality

2012 ◽  
Vol 4 (1) ◽  
pp. 71-86
Author(s):  
T. Satyanarayana Chary ◽  
G. Rathnakar ◽  
Ch. Sunder Shyam
Keyword(s):  
Capital Account ◽  
Capital Account Convertibility ◽  
Account Convertibility

Paradox of Full Capital Account Convertibility in India

Paradigm ◽  
2007 ◽  
Vol 11 (1) ◽  
pp. 28-36
Author(s):  
Hrushikesh Mallick ◽  
Udaya Shankar Mishra
Keyword(s):  
Capital Account ◽  
Capital Account Convertibility ◽  
Account Convertibility

MANAGING FLEXIBILITY: JAPANESE EXCHANGE RATE POLICY, 1971–2007

2007 ◽  
Vol 52 (03) ◽  
pp. 335-361 ◽  
Author(s):  
SHINJI TAKAGI
Keyword(s):  
Exchange Rate ◽  
Capital Controls ◽  
Exchange Rate Policy ◽  
Foreign Exchange Intervention ◽  
Bretton Woods ◽  
Capital Account Convertibility ◽  
Rate Policy ◽  
Account Convertibility ◽  
Leaning Against The Wind

The paper reviews Japan's exchange rate policy from the end of the Bretton Woods era to the present. The Japanese authorities used various tools to manage the yen–dollar exchange rate over much of this period. The most dominant was official foreign exchange intervention, which in most instances took the form of "leaning against the wind". Capital controls were also used but, with full capital account convertibility, ceased to exist as an instrument of exchange rate policy by the mid-1980s. Following the post-Plaza appreciation of the yen, the authorities eased monetary policy to arrest the appreciating pressure. The possible role of exchange rate policy in the great asset inflation that followed, however, remains unanswered. More recently, exchange rate policy during the period of prolonged stagnation and fragile recovery was made subordinate to the overall stance of macroeconomic policy. In this regard, particularly striking in terms of scale and frequency was the "great intervention" of 2003–2004. Equally striking has been the total absence of official intervention since. It would require a renewed substantial volatility of the yen to know whether this indeed marks a permanent shift in Japan's exchange rate policy.

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