A study on the mechanism of speculative attack and the defence strategy of the central bank.

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...

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Bibliographic Details
Main Author: Chang-Hyun Yun
Format: Article
Language:English
Published: Korea Institute for International Economic Policy 1999-09-01
Series:East Asian Economic Review
Subjects:
International Financial Market
Financial Crisis
Central Bank
Korea
Online Access:http://dx.doi.org/10.11644/KIEP.JEAI.1999.3.3.47
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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
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AT changhyunyun studyonthemechanismofspeculativeattackandthedefencestrategyofthecentralbank
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