paper is to assess whether this is true for emerging Asia's economies. Using a dynamic factor model and a structural vector … auto-regression model, we show that long-term interest rates in Asia are indeed predominantly driven by global factors …-term interest rates. Nevertheless, the monetary transmission mechanism, though effective, is somewhat weaker in Asia during the …

paper is to assess whether this is true for emerging Asia’s economies. Using a dynamic factor model and a structural vector … auto-regression model, we show that long-term interest rates in Asia are indeed predominantly driven by global factors …-term interest rates. Nevertheless, the monetary transmission mechanism, though effective, is somewhat weaker in Asia during the …