Sterilization, Monetary Policy, and Global Financial Integration

Joshua Aizenman and Reuven Glick

No 13902, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper investigates the changing pattern and efficacy of sterilization within emerging market countries as they liberalize markets and integrate with the world economy. We estimate the marginal propensity to sterilize foreign asset accumulation associated with net balance of payments inflows, across countries and over time. We find that the extent of sterilization of foreign reserve inflows has risen in recent years to varying degrees in Asia as well as in Latin America, consistent with greater concerns about the potential inflationary impact of reserve inflows. We also find that sterilization depends on the composition of balance of payments inflows.

JEL-codes: F15 F21 F31 (search for similar items in EconPapers)
Date: 2008-03
New Economics Papers: this item is included in nep-cba, nep-ifn, nep-mon, nep-opm and nep-sea
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Published as Joshua Aizenman & Reuven Glick, 2009. "Sterilization, Monetary Policy, and Global Financial Integration," Review of International Economics, Blackwell Publishing, vol. 17(4), pages 777-801, 09.

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Journal Article: Sterilization, Monetary Policy, and Global Financial Integration (2009)
Working Paper: Sterilization, monetary policy, and global financial integration (2008)
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