Central Banking and Monetary Policy in the Asia-Pacific
Show Less

Central Banking and Monetary Policy in the Asia-Pacific

Akhand Akhtar Hossain

This timely book reviews the modern literature on inflation and monetary policy, and highlights contemporary issues in the design and conduct of monetary policy for price stability in developing Asia.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 9: Inflation and Monetary Policy in Selected Countries of the Asia-Pacific

Akhand Akhtar Hossain


One key theme of this book is that monetary policy has played a major role in macroeconomic stability in the Asia-Pacific region. Macroeconomic stability, in turn, has created an environment for rapid economic growth in an increasingly globalised economy. Sustained economic growth has been the main reason behind steady amelioration of poverty in developing Asia (Bhagwati, 2005; Dollar and Kraay, 2002; 2004; Tsai and Huang, 2007). Both monetary and fiscal policies have played a role in maintaining macroeconomic stability in developing Asia. Since the East Asian currency crises of the late 1990s monetary policy in particular has gained increased importance for price stability in this region. Monetary policy independence and its contribution to price stability, however, depend on exchange rate arrangements and capital flows. Since the 1990s most Asian developing countries have made exchange rates flexible and started removing capital controls. Although some of these countries have given autonomy to central banks, monetary and fiscal policies have not yet been adequately institutionalised. Provided that financial reforms and global economic integration continue in this region, most central banks in developing Asia should steadily gain credibility. This would make monetary policy more effective in achieving price stability (IMF’s World Economic Outlook, July 2008; Jongwanich and Park, 2008; Mohanty and Klau, 2001). This chapter provides an overview of inflation and monetary policy in selected countries of the Asia-Pacific. (Some brief comments are also made on monetary policy in the UK.) This is an abridged version of a longer background draft. The discussion covers...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.