Working Paper: NBER ID: w19084
Authors: Valentina Bruno; Hyun Song Shin
Abstract: This paper develops methods for assessing the sensitivity of capital flows to global financial conditions, and applies the methods in assessing the impact of macroprudential policies introduced by Korea in 2010. Relative to a comparison group of countries, we find that the sensitivity of capital flows into Korea to global conditions decreased in the period following the introduction of macroprudential policies.
Keywords: No keywords provided
JEL Codes: F32; F33; F34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Korea's macroprudential policies (E61) | sensitivity of capital flows to global conditions (F32) |
| sensitivity of capital flows to global conditions (F32) | responsiveness of capital flows into Korea to growth of net interoffice assets of foreign banks in the U.S. (F21) |
| Korea's macroprudential policies (E61) | responsiveness of capital flows into Korea to growth of net interoffice assets of foreign banks in the U.S. (F21) |
| Korea's macroprudential policies (E61) | structural shift in Korea's financial dynamics (F65) |
| Korea's macroprudential policies (E61) | differences in sensitivity of capital flows between Korea and other comparable Asian countries (F32) |