 Impact of FX-Related Macroprudential Measures in Korea: An AssessmentChangho Choi Chapter 8 in Volatile Capital Flows in Korea, 2014, pp 187-216 from Palgrave Macmillan Abstract: Abstract In the periods leading to and during the global financial crisis, Korea experienced surges and reversals in capital flows on an unprecendented scale. The costs of these volatile capital flows were brought to light when about 50 billion dollars of portfolio and other investments—amounting to 5.2 percent of nominal gross domestic product (GDP) in 2008—flowed out of the financial system in the three months following the Lehman Brothers failure in September 2008, pushing the Korean economy close to another currency crisis. A main factor driving the excessive volatility of capital flows over this period was the procyclical fluctuations in cross-border capital flows through the banking sector, especially short-term noncore foreign exchange (FX) liabilities.1 In recognition of these vulnerabilities, Korea has introduced a new set of macroprudential policy measures since 2010 aimed at mitigating the procyclicality of cross-border capital flows through banks. Keywords: Gross Domestic Product; Banking Sector; Forecast Horizon; Policy Scenario; Domestic Bank (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-36876-8_8 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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