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Tanner, Evan C.

Exchange Market Pressure, Currency Crises, and Monetary Policy Additional Evidence From Emerging Markets / Evan Tanner. [electronic resource] : Evan Tanner. - Washington, D.C. : International Monetary Fund, 2002. - 1 online resource (54 p.) - IMF Working Papers; Working Paper ; No. 02/14 . - IMF Working Papers; Working Paper ; No. 02/14 .

This paper extends my previous work by examining the relationship between monetary policy and exchange market pressure (EMP) in 32 emerging market countries. EMP is a gauge of the severity of crises, and part of this paper specifically analyzes crisis periods. Two variables gauge the stance of monetary policy: the growth of central bank domestic credit and the interest differential (domestic versus U.S. dollar). Evidence suggests that monetary policy plays an important role in currency crises. And, in most countries the shocks to monetary policy affect EMP in the direction predicted by traditional approaches: tighter money reduces EMP.

ISBN: 1451843135 : 15.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781451843132.001 doi

Subjects--Topical Terms:
Central Bank
Currency Crisis
Exchange Market Pressure
Exchange Rate
Inflation
Macroeconomic Aspects of International Trade and Finance

Subjects--Geographic Terms:
Brazil
Bulgaria