We develop a simple theoretical model and then use bank data from seven Asian economies to investigate the effects on bank lending of different liquidity management tools used by central banks. We find that hiking reserve requirements to sterilise foreign exchange purchases will retard bank...

This article examines the relationship between exchange rates and stock prices in eight Asian countries. We test for cointegration and Granger causality for both individual countries using the Gregory and Hansen cointegration test that accommodates a structural break in the cointegrating vector,...