A study on the mechanism of speculative attack and the defence strategy of the central bank.
We first analyze the concrete mechanism of speculative attack on the foreign exchange market which became very prevalent phenomena during the foreign exchange crisis. When the central bank of the domestic country tries to defend the attack by increasing the interest rate, some problems can arise in...
Main Author: | |
---|---|
Format: | Article |
Language: | English |
Published: |
Korea Institute for International Economic Policy
1999-09-01
|
Series: | East Asian Economic Review |
Subjects: | |
Online Access: | http://dx.doi.org/10.11644/KIEP.JEAI.1999.3.3.47 |
id |
doaj-11970b8d27684762872243dc0e9302aa |
---|---|
record_format |
Article |
spelling |
doaj-11970b8d27684762872243dc0e9302aa2020-11-25T01:22:46ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16671999-09-01334369http://dx.doi.org/10.11644/KIEP.JEAI.1999.3.3.47A study on the mechanism of speculative attack and the defence strategy of the central bank. Chang-Hyun Yun We first analyze the concrete mechanism of speculative attack on the foreign exchange market which became very prevalent phenomena during the foreign exchange crisis. When the central bank of the domestic country tries to defend the attack by increasing the interest rate, some problems can arise in that the speculative attacks through foreign exchange options market and/or index futures markets can be very successful due to that policy. So the central bank should pay much attention to the microstructure of the financial markets when the defence strategy against speculative attack is determined.http://dx.doi.org/10.11644/KIEP.JEAI.1999.3.3.47International Financial MarketFinancial CrisisCentral BankKorea |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Chang-Hyun Yun |
spellingShingle |
Chang-Hyun Yun A study on the mechanism of speculative attack and the defence strategy of the central bank. East Asian Economic Review International Financial Market Financial Crisis Central Bank Korea |
author_facet |
Chang-Hyun Yun |
author_sort |
Chang-Hyun Yun |
title |
A study on the mechanism of speculative attack and the defence strategy of the central bank. |
title_short |
A study on the mechanism of speculative attack and the defence strategy of the central bank. |
title_full |
A study on the mechanism of speculative attack and the defence strategy of the central bank. |
title_fullStr |
A study on the mechanism of speculative attack and the defence strategy of the central bank. |
title_full_unstemmed |
A study on the mechanism of speculative attack and the defence strategy of the central bank. |
title_sort |
study on the mechanism of speculative attack and the defence strategy of the central bank. |
publisher |
Korea Institute for International Economic Policy |
series |
East Asian Economic Review |
issn |
2508-1640 2508-1667 |
publishDate |
1999-09-01 |
description |
We first analyze the concrete mechanism of speculative attack on the foreign exchange market which became very prevalent phenomena during the foreign exchange crisis. When the central bank of the domestic country tries to defend the attack by increasing the interest rate, some problems can arise in that the speculative attacks through foreign exchange options market and/or index futures markets can be very successful due to that policy. So the central bank should pay much attention to the microstructure of the financial markets when the defence strategy against speculative attack is determined. |
topic |
International Financial Market Financial Crisis Central Bank Korea |
url |
http://dx.doi.org/10.11644/KIEP.JEAI.1999.3.3.47 |
work_keys_str_mv |
AT changhyunyun astudyonthemechanismofspeculativeattackandthedefencestrategyofthecentralbank AT changhyunyun studyonthemechanismofspeculativeattackandthedefencestrategyofthecentralbank |
_version_ |
1725125502106075136 |