- Robert Corker, and Wanda Tseng
- Published Date:
- March 1991
Financial Liberalization, Money Demand, and Monetary Policy in Asian Countries
Wanda Tseng and Robert Corker
INTERNATIONAL MONETARY FUND
© 1991 International Monetary Fund
Library of Congress Cataloging-in-Publication Data
Financial liberalization, money demand, and monetary policy in Asian countries / Wanda Tseng and Robert Corker.
p. cm. — (Occasional paper, ISSN 0251-6365: 84)
Includes bibliographical references.
1. Monetary policy—Asia. 2. Monetary policy—Asia, Southeastern. I. Corker, Robert. II. Title. III. Series: Occasional paper (International Monetary Fund); no. 84.
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- I. Introduction and Summary
- II. Financial Liberalization
- III. Money Demand and Financial Liberalization
- IV. Implementation of Monetary Policy
- Financial Liberalization and Channels of Monetary Policy
- Targets and Instruments of Monetary Policy
- Experience with Interest Rate Liberalization and Indirect Monetary Policy Instruments
- V. Concluding Observations
- I. Financial Liberalization in Asian Countries During the 1980s—Summary
- II. Data Sources and Definitions
- III. Individual Country Results
- 1. Asian Countries: Long-Run Relationships Between Money, Income, and Interest Rates
- 2. Asian Countries: Error Correction Equations—Narrow Money
- 3. Asian Countries: Error Correction Equations—Broad Money
- 4. Asian Countries: Growth Rates of Monetary Variables, 1980–89
- 5. Indonesia: Factors Affecting Reserve Money, 1984–89
- 6. Korea: Factors Affecting Reserve Money, 1980–89
- 7. Malaysia: Factors Affecting Reserve Money, 1984–89
- 8. Philippines: Factors Affecting Reserve Money, 1984–89
- 9. Sri Lanka: Factors Affecting Reserve Money, 1984–89
- 10. Thailand: Factors Affecting Reserve Money, 1985–89
The following symbols have been used throughout this paper:
- … to indicate that data are not available;
- — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
- – between years or months) e.g., 1990–91 or January–June (to indicate the-years or months covered, including the beginning and ending years or months;
- / between years (e.g., 1990/91) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
This paper was prepared at the request of the South-East Asian Central Banks) SEACEN (Research and Training Center as part of a research project on monetary policy in the SEACEN countries during the 1980s. An earlier version of the paper was presented at the Second Workshop on Monetary Policy in the SEACEN Countries, which was held in Kuala Lumpur, Malaysia on December 17–19, 1990. The member countries of the SEACEN are Indonesia, Korea, Malaysia, Myanmar, Nepal, the Philippines, Singapore, Sri Lanka, and Thailand, and throughout this paper, the term “Asian countries” refers to this group of nine countries.
The authors wish to thank P.R. Narvekar, Hubert Neiss, and Kunio Saito for their support in this research project. The paper benefited from comments and suggestions made by Susan Schadler, Jorge Marquez-Ruarte, and other colleagues in the Asian Department. Thanks are also due to Louis Chan, summer intern in the Asian Department, who contributed to the preparation of this paper; Viola Chu for research assistance; Esha Ray of the External Relations Department and Rosanne Heller for editorial assistance; and Clara Eulate, Sherine Pratt, and Nora Roller for secretarial assistance.
The opinions expressed in the paper are those of the authors and should not be construed as representing the views of the authorities of the SEACEN member countries, Executive Directors of the IMF, or other IMF staff members.