The relationship among Taiwan exchange rate, interest rate and capital mobility before and after the financial crisis

• Main Authors: Huang,ChiChia, 黃啟家
• Other Authors: Chen,Wentien
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/15827390972931080551

碩士 === 東海大學 === 經濟系 === 99 === Exchange rate and interest rate always have a powerful effect on national commerce and capital movement. Due to the trend of financial liberalism, the global economic systems have already been closely connected. Mass countries cannot avoid the impact when the financial tsunami hit the world. Taiwan, as a small open economic system, it would definitely suffer the influence caused by the financial tsunami. For the reason, this article researched the interactive relationship among exchange rate, interest rate and capital movement in the Asia Financial Crisis and Global Financial Crisis over 1997/07-2009/08. In this research, unit root test, co-integration test, vector error correction model (VECM), impulse response analysis and Granger causality test are used. Besides, the results of the research are compared with the theory models. Results are presented to show that it has long term co-integration relationship among exchange rate, interest rate and capital movement. In a short term, the interest rate can affect exchange rate between the Asia Financial Crisis and global economic recession.