The Impacts of Financial Integration on the Linkages Between Monetary Independence and Foreign Exchange Reserves

References

• Agenor, P.-R. (2003). Benefits and costs of international financial integration: Theory and facts. The World Economy, 26(8), 1089–1118.
   Web of Science ®Google Scholar
• Aizenman, J., Chinn, M. D., & Ito, H. (2008). Assessing the emerging global financial architecture: Measuring the trilemma’s configuration over time (NBER Working Paper 14533). Retrieved National Bureau of Economic Research website: http://www.nber.org/papers/w14533
   Google Scholar
• Aizenman, J., Chinn, M. D., & Ito, H. (2010). The emerging global financial architecture: Tracing and evaluating new patterns of the trilemma configuration. Journal of International Money and Finance, 29(4), 615–641.
   Web of Science ®Google Scholar
• Aizenman, J., Chinn, M. D., & Ito, H. (2013). The ‘impossible trinity’ hypothesis in an era of global imbalances: Measurement and testing. Review of International Economics, 21(3), 447–458.
   Web of Science ®Google Scholar
• Aizenman, J., & Ito, H. (2012). Trilemma policy convergence patterns and output volatility. North America Journal of Economics and Finance, 23(3), 269–285.
   Web of Science ®Google Scholar
• Aizenman, J., & Lee, J. (2007). International reserves: Precautionary versus Mercantilist view, theory and evidence. Open Economies Review, 18(2), 191–214.
   Web of Science ®Google Scholar
• Akcelik, Y., Cortuk, O., & Turhan, I. (2014). Mitigating Turkey’s trilemma tradeoffs. Emerging Market Finance and Trade, 50(6), 102–118.
   Web of Science ®Google Scholar
• An, L., Kim, Y., & You, Y. (2016). Floating exchange rates and macroeconomic independence. International Review of Economics and Finance, 42, 23–35.
   Web of Science ®Google Scholar
• Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58, 277–297.
   Web of Science ®Google Scholar
• Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51.
   Web of Science ®Google Scholar
• Bar-IIan, A., & Lederman, D. (2007). International reserves and monetary policy. Economics Letters, 97(2), 170–178.
   Web of Science ®Google Scholar
• Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143.
   Web of Science ®Google Scholar
• Bordo, M. D., & MacDonald, R. (1997). Violation of the ‘rules of the game’ and the credibility of the classical gold standard, 1880-1914 (NBER Working Paper 6115). Retrieved from National Bureau of Economic Research website: http://www.nber.org/papers/w6115
   Google Scholar
• Borensztein, E., Zettelmeyer, J., & Philippon, T. (2001). Monetary independence in emerging markets: Does the exchange rate regime make a difference? (IMF Working Paper WP/01/1). Retrieved from International Monetary Fund website: https://www.imf.org/external/pubs/ft/wp/2001/wp0101.pdf
   Google Scholar
• Brambor, T., Clark, W.R., & Golder, M. (2006). Understanding interaction models: Improving empirical analyses. Political Analysis, 14(1), 63–82.
   Web of Science ®Google Scholar
• Cheung, Y-W., & Ito, H. (2009). A cross-country empirical analysis of international reserves. International Economic Journal, 23(4), 447–481.
   Google Scholar
• Chinn, M. D. & Ito, H. (2006). What Matters for financial development? Capital controls, institutions, and interactions. Journal of Development Economics, 81(1), 163–192.
   Web of Science ®Google Scholar
• Cukierman, A. (1992). Central bank strategy, credibility, and independence: Theory and evidence. Cambridge, MA: MIT Press.
   Google Scholar
• Dabrowski, M. A., Smiech, S. & Papiez, M. (2015). Monetary policy options for mitigating the impact of the global financial crisis on emerging market economies. Journal of International Money and Finance, 51, 409–431.
   Web of Science ®Google Scholar
• D’Amato, M., Pistoresi, B., & Salsano, F. (2009). On the determinants of central bank independence in open economies. International Journal of Finance and Economics, 14(2), 107–119.
   Web of Science ®Google Scholar
• Di Giovanni, J., & Shambaugh, J. C. (2008). The impact of foreign interest rate on the economy: The role of the exchange rate. Journal of International Economy, 74(2), 31–361.
   Web of Science ®Google Scholar
• Dincer, N. N., & Eichengreen, B. (2014). Central bank transparency and independence: Updates and new measures. International Journal of Central Banking, 10(1), 189–259.
   Web of Science ®Google Scholar
• Dooley, M. P., Folkerts-Landau, D., & Garber, P. (2004). The revived Bretton Woods system: The effects of periphery intervention and reserve management on interest rates and exchange rates in center countries (NBER Working Paper 10332). Retrieved from National Bureau of Economic Research website: http://www.nber.org/papers/w10332
   Google Scholar
• Edwards, S. (2015). Monetary policy independence under flexible exchange rates: An Illusion? The World Economy, 38(5), 773–787.
   Web of Science ®Google Scholar
• Frankel, J. A. (1999). No single currency regime is right for all countries or at all time (NBER Working Paper 7338). Retrieved from the National Bureau of Economic Research website: http://www.nber.org/papers/w7338
   Google Scholar
• Frankel, J., & Saravelos, G. (2012). Can leading indicators access country vulnerability? Evidence from the 2008-09 global financial crisis. Journal of International Economics, 87(2), 216–231.
   Web of Science ®Google Scholar
• Frankel, J., Schmukler, S. L., & Serven, L. (2004). Global transmission of interest rates: Monetary independence and currency regime. Journal of International Money and Finance, 23(5), 701–733.
   Web of Science ®Google Scholar
• Fratzscher, M. (2002). The Euro bloc, the Dollar bloc and the Yen bloc: How much monetary policy independence can exchange rate flexibility buy in an interdependent world? (ECB Working Paper No. 154). Retrieved from SSRN website: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=357942
   Google Scholar
• Glick, R., & Hutchison, M. (2009). Navigating the trilemma: Capital flows and monetary policy in China. Journal of Asian Economics, 20(3), 205–224.
   Google Scholar
• Hayo, B. (1998). Inflation culture, central bank independence and price stability. European Journal of Political Economy, 14(2), 241–263.
   Google Scholar
• Hosny, A. S., Kishor, N. K., & Bahmani-Oskooee, M. (2015). Understanding the dynamics of the macroeconomic trilemma. International Review of Applied Economics, 29(1), 32–64.
   Web of Science ®Google Scholar
• Huh, H-S., Philip Ji, I., & Park, C-Y. (2016). The ‘trilemma’ hypothesis and policy implications for Fiji. Asian-Pacific Economic Literature, 30(1), 99–119.
   Web of Science ®Google Scholar
• Hutchison, M., Sengupta, R., & Singh, N. (2012). India’s trilemma: Financial liberalisation, exchange rates and monetary policy. The World Economy, 35(1), 3–18.
   Web of Science ®Google Scholar
• Ito, H., & Kawai, M. (2014). Determinants of the trilemma policy combination (ADBI Working Paper Series No.456). Retrieved from Asian Development Bank website: https://www.adb.org/sites/default/files/publication/156311/adbi-wp456.pdf
   Google Scholar
• Kharroubi, E., & Zampolli, F. (2016). Monetary independence in a financially integrated world: What do measures of interest rate co-movement tell us? (pp. 193–205). BIS paper No 88.
   Google Scholar
• Kim, S. (2016). Factor determinants of total factor productivity growth for the Japanese manufacturing industry. Contemporary Economic Policy, 34(3), 572–586.
   Web of Science ®Google Scholar
• Kim, C. J., & Lee, J.-H. (2008). Exchange rate regime and monetary policy independence in East Asia. Pacific Economic Review, 13(2), 155–170.
   Web of Science ®Google Scholar
• Lane, P. R., & Milesi-Ferretti, G. M. (2007). The external wealth of nations mark II: Revised and extended estimates of foreign assets and liabilities, 1970–2004. Journal of International Economics, 73, 223–250.
   Web of Science ®Google Scholar
• Miniane, J., & Rogers, J. H. (2007). Capital controls and the international transmission of U.S. Money shocks. Journal of Money, Credit and Banking, 39(5), 1003–1035.
   Web of Science ®Google Scholar
• Mohanty, M. S., & Scatigna, M. (2005). Has globalisation reduced monetary independence? In Monetary and Economic Department (Eds.), Globalisation and monetary policy in emerging countries (pp. 17–59). Basel: Bank for International Settlements.
   Google Scholar
• Obstfeld, M., Shambaugh, C. J., & Taylor, A. M. (2005). The trilemma in history: Tradeoffs among exchange rates, monetary policy and capital mobility. The Review of Economics and Statistics, 87(3), 423–438.
   Web of Science ®Google Scholar
• Rey, H. (2015). Dilemma not trilemma, the global financial cycle and monetary policy independence (NBER Working Paper 21162). Retrieved from National Bureau of Economic Research website: http://www.nber.org/papers/w21162
   Google Scholar
• Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. Stata Journal, 9(1), 86–136.
   Web of Science ®Google Scholar
• Rose, K. A. (1996). Explaining exchange rate volatility: An empirical analysis of ‘the holy trinity’ of monetary independence, fixed exchange rates, and capital mobility. Journal of International Money and Finance, 15(6), 925–945.
   Web of Science ®Google Scholar
• Shambaugh, J. C. (2004). The effect of fixed exchange rate on monetary policy. The Quarterly Journal of Economics, 119(1), 301–352.
   Web of Science ®Google Scholar
• Steiner, A. (2017). Central banks and macroeconomic policy choices: Relaxing the trilemma. Journal of Banking and Finance, 77, 283–299.
   Web of Science ®Google Scholar
• Taguchi, H. (2011a). Currency regime and monetary autonomy. Empirical evidence using recent global data from 1990 to 2017. International Economic Journal, 25(3), 341–358.
   Google Scholar
• Taguchi, H. (2011b). Monetary autonomy in emerging market economies: The role of foreign reserves. Emerging Market Review, 12(4), 371–388.
   Web of Science ®Google Scholar
• Wooldridge, J. M. (2013). Introductory econometrics: A modern approach. Mason, OH: South-Western.
   Google Scholar
• You, Y., Kim, Y., & Ren, X. (2014). Do capital controls enhance monetary independence? Review of Development Economics, 18(3), 475–489.
   Web of Science ®Google Scholar
• Yu, H. (2012). Test for trilemma for five selected Asian countries and policy implications. Applied Economics Letters, 19(17), 1735–1739.
   Web of Science ®Google Scholar
• Ziesemer, T. H. W. (2012). Worker remittances, migration, accumulation and growth in poor developing countries: Survey and analysis of direct and indirect effects. Economic Modelling, 29(2), 103–118.
   Web of Science ®Google Scholar