The Impact of Financial Crisis on Asymmetric Foreign Exchange Market Intervention in Emerging Asia
- DOI
- 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/).
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 - 10.2991/ichssr-16.2016.31 ID - Wang2016/07 ER -