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Unconventional monetary policy in the Asian financial crisis
Author(s) -
Bayoumi Tamim,
Gag Joseph
Publication year - 2018
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.12254
Subject(s) - financial crisis , monetary policy , economics , recapitalization , government (linguistics) , private sector , financial system , finance , economic policy , monetary economics , macroeconomics , economic growth , linguistics , philosophy
Abstract Some of the policies central banks used during the Asian Financial Crisis had elements of unconventional monetary policy in that they involved the government buying assets that the private sector was unwilling to hold. We focus on public funding of bank recapitalizations in Thailand and the extraordinary purchase of equities in Hong Kong. Although it is important to calibrate these policies appropriately, we believe they helped to stabilize economies through channels that were not well understood at the time of the Asian crisis.