期刊名称：Discussion paper / Centre for International Economic Studies, University of Adelaide
电子版ISSN：1445-3746
出版年度：2005
卷号：1
出版社：Centre for International Economic Studies, University of Adelaide
摘要：This paper uses a simple open economy interest rate determination model to
empirically examine an important aspect of pre-crisis monetary and exchange rate
policy. It investigates whether sterilisation of the reserve effects of capital inflows
helped keep interest rates sufficiently high that they may have prolonged the inflow of
capital. Despite the use of a pre-crisis sample in this study, the issues in this paper have
relevance today given the recent trend in foreign capital inflow for Asia. The empirical
section is concerned with the effect of reserve flows on the interest rate and is divided
into two parts. The first tests for a contemporaneous effect of the basic model using
OLS and IV methods. The second generalises the model to assess for lagged effects by
way of VAR analysis. The results show that there are some contemporaneous effects of
sterilisation on the domestic interest rate though the effects are stronger when
estimating the lagged model.
