Proceedings of 2016 2nd International Conference on Humanities and Social Science Research (ICHSSR 2016)

The Impact of Financial Crisis on Asymmetric Foreign Exchange Market Intervention in Emerging Asia

Authors
Yanzhen Wang, Mingming Liu, Xiumin Li
Corresponding Author
Yanzhen Wang
Available Online July 2016.
DOI
https://doi.org/10.2991/ichssr-16.2016.31How to use a DOI?
Keywords
emerging Asia, asymmetry, foreign exchange market intervention, generalized method of moments
Abstract

Using asymmetric loss function, this paper estimates asymmetric preference of central bank foreign exchange market intervention in seven emerging Asian economies before and after the 1997-1998 Asian financial crisis and 2008 global financial crisis to reveal the impact of financial crisis on asymmetric foreign exchange market intervention in emerging Asian economies. The estimation results indicate that the 1997-1998 Asian financial crisis makes all sample countries conduct significant asymmetric foreign exchange market intervention against domestic currencies depreciation, while the 2008 global financial crisis makes most emerging Asian economies increase the degree of asymmetric foreign exchange market intervention against domestic currencies appreciation. Besides, during crisis period, more emerging Asian economies tend to conduct stronger asymmetric intervention against nominal exchange rate. While, during non-crisis period, most emerging Asian economies tend to conduct stronger asymmetric intervention against nominal effective exchange rate to maintain their export competiveness.

Copyright
© 2016, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of 2016 2nd International Conference on Humanities and Social Science Research (ICHSSR 2016)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
July 2016
ISBN
978-94-6252-235-0
ISSN
2352-5398
DOI
https://doi.org/10.2991/ichssr-16.2016.31How to use a DOI?
Copyright
© 2016, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Yanzhen Wang
AU  - Mingming Liu
AU  - Xiumin Li
PY  - 2016/07
DA  - 2016/07
TI  - The Impact of Financial Crisis on Asymmetric Foreign Exchange Market Intervention in Emerging Asia
BT  - Proceedings of 2016 2nd International Conference on Humanities and Social Science Research (ICHSSR 2016)
PB  - Atlantis Press
SP  - 144
EP  - 149
SN  - 2352-5398
UR  - https://doi.org/10.2991/ichssr-16.2016.31
DO  - https://doi.org/10.2991/ichssr-16.2016.31
ID  - Wang2016/07
ER  -