Monetary policy regimes and macroeconomic outcomes :
Hong Kong and Singapore /
by Stefan Gerlach and Petra Gerlach-Kristen.

Description

Main Author

Gerlach, Stefan.

Related Names

Gerlach-Kristen, Petra.
Bank for International Settlements. Monetary and Economic Dept.

Language(s)

English

Published

Basel, Switzerland : Bank for International Settlements, Monetary and Economic Dept., c2006.

Subjects

Comparative economics.
Foreign exchange administration > Foreign exchange administration / China > Foreign exchange administration / China / Hong Kong.
Foreign exchange administration > Foreign exchange administration / Singapore.
Inflation (Finance) > Inflation (Finance) / China > Inflation (Finance) / China / Hong Kong.
Inflation (Finance) > Inflation (Finance) / Singapore.
Monetary policy > Monetary policy / China > Monetary policy / China / Hong Kong.
Monetary policy > Monetary policy / Singapore.

Summary

This paper studies the relationship between macroeconomic behaviour and the monetary policy regime in Hong Kong and Singapore, using data for 1984-2004. We estimate an econometric model, comprising a Phillips curve, an IS curve and an equation for changes in the nominal effective exchange rate (NEER), which, in the case of Singapore, can be interpreted as a policy reaction function. The parameter estimates differ in two regards: the NEER responds to inflation in Singapore but not in Hong Kong, and the autoregressive parameter for the output gap in Singapore is smaller than in Hong Kong. Overall, the variability of inflation has been lower in Singapore, but the volatility of real economic activity has been similar in the two economies.

Note

"April 2006."

Physical Description

iii, 30 p. : ill. ; 30 cm.

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