EXCHANGE RATE REGIME AND MONETARY POLICY INDEPENDENCE IN EAST ASIA

摘要: .  This paper investigates whether the choice of exchange rate regimes influences sensitivity domestic interest rates to international rates. We empirically analyse this issue in context East Asian economies by employing a regime switching model. find that local declined Korea and Thailand after they adopted floating regimes. also Japan, with regime, has greater independence monetary policy than pegged economy such as Hong Kong. These empirical findings suggest flexibility provides independence.