## Monetary Transmission of Global Imbalances in Asian Countries

_IMF Working Papers, September 1, 2010_

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## Bibliographic details
- Authors: Il Houng Lee, Woon Gyu Choi
- Published: September 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455205455.001

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### Summary
- Title: Monetary Transmission of Global Imbalances in Asian Countries
- Authors: Il Houng Lee, Woon Gyu Choi
- Publication date: September 1, 2010
- Paper objective: Explores linkages between the global and domestic monetary gaps and estimates effects of monetary gaps on output growth, inflation, and net saving rates.
- Sample and period: panel data for 20 Asian countries for 1980-2008.

### Methodology and scope
- Empirical approach: dynamic panel estimation (implied by keywords and summary).
- Key variables analyzed:
  - global monetary gap
  - domestic monetary gaps
  - output growth / Output gap
  - inflation / Prices
  - net saving rates / saving-investment gap
  - exchange rates and capital flows (subject areas referenced)
- Regional focus: individual emerging market and developing countries in Asia.

### Key findings
- There is a significant pass-through of the global monetary gap to domestic monetary gaps in the sample of 20 Asian countries for 1980-2008.
- Domestic monetary gaps, in turn, affect:
  - output growth
  - inflation
- Evidence indicates that the global monetary condition is partly responsible for the current account surplus in Asia.
- The paper links global monetary conditions to net saving rates (net saving rates noted as an outcome variable).

### Policy implications and recommendations
- The results draw implications for monetary policy coordination aimed at global rebalancing.
- Suggested policy focus (implied by conclusions): coordination of monetary policies across countries to address spillovers from the global monetary gap to domestic outcomes such as output growth, inflation, and current account balances.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/monetary-transmission-of-global-imbalances-in-asian-countries-24218_