English  |  正體中文  |  简体中文  |  Items with full text/Total items : 49279/83828 (59%)
Visitors : 7145952      Online Users : 74
RC Version 7.0 © Powered By DSPACE, MIT. Enhanced by NTU Library & TKU Library IR team.
Scope Tips:
  • please add "double quotation mark" for query phrases to get precise results
  • please goto advance search for comprehansive author search
  • Adv. Search
    HomeLoginUploadHelpAboutAdminister Goto mobile version
    Please use this identifier to cite or link to this item: http://tkuir.lib.tku.edu.tw:8080/dspace/handle/987654321/80086


    Title: China's Unsustainable Policy of Monetary Sterilization
    Authors: Kleykamp, David
    Contributors: 淡江大學經濟學系
    Keywords: Moral Hazard;Monetary Policy;Foreign Exchange Reserves
    Date: 2010-10-01
    Issue Date: 2013-01-17 15:47:13 (UTC+8)
    Publisher: 新北市:淡江大學國際研究學院
    Abstract: Most studies of monetary sterilization seek to determine how effective such policies are and typically do not address the issue of sustainability. Those works that do consider sustainability find that sterilization is possible in the long run if domestic interest rates remain below foreign rates; if capital markets are imperfect; or if the scale of sterilization does not become too large. This paper asserts that sterilization may not be possible in the long run since it engenders a spirit of moral hazard, thus increasing systemic risk within the banking system, leading to a highly risky, speculative bubble. Loading the banking system with low risk, low yielding sterilization assets encourages banks to seek out riskier investments to balance their unduly secure portfolios. China is considered to be a good example of this phenomenon. China has engaged in massive sterilization over the last five years and has consequently experienced a bubble in lending. As a result, China will quite likely be forced by objective circumstances to reduce the scale of its sterilization efforts and allow greater flexibility of its currency in the future.
    Relation: Tamkang Journal of International Affairs 14(2), pp.43-89
    Appears in Collections:[經濟學系暨研究所] 期刊論文

    Files in This Item:

    File Description SizeFormat
    index.html0KbHTML203View/Open

    All items in 機構典藏 are protected by copyright, with all rights reserved.


    DSpace Software Copyright © 2002-2004  MIT &  Hewlett-Packard  /   Enhanced by   NTU Library & TKU Library IR teams. Copyright ©   - Feedback