Kogod School of Business
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NBER Working Papers and Publications
|May 2013||Assessing Macroprudential Policies: Case of Korea|
with Hyun Song Shin: w19084
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.
Published: Assessing Macroprudential Policies: Case of South Korea* Valentina Bruno1 andHyun Song Shin2 The Scandinavian Journal of Economics Volume 116, Issue 1, pages 128–157, January 2014
|Capital Flows, Cross-Border Banking and Global Liquidity|
with Hyun Song Shin: w19038
We investigate global factors associated with cross-border capital flows. We formulate a model of gross capital flows through the international banking system and derive a closed form solution that highlights the leverage cycle of global banks as being a prime determinant of the transmission of financial conditions across borders. We then test the predictions of our model in a panel study of 46 countries and find that global factors dominate local factors as determinants of banking sector capital flows.
Published: Journal of Monetary Economics Volume 71, April 2015, Pages 119–132 Cover image Capital flows and the risk-taking channel of monetary policy Valentina Brunoa, Hyun Song Shinb, ,
|April 2013||Capital Flows and the Risk-Taking Channel of Monetary Policy|
with Hyun Song Shin: w18942
We study the dynamics linking monetary policy with bank leverage and show that adjustments in leverage act as the linchpin in the monetary transmission mechanism that works through fluctuations in risk-taking. Motivated by the evidence, we formulate a model of the "risk-taking channel" of monetary policy in the international context that rests on the feedback loop between increased leverage of global banks and capital flows amid currency appreciation for capital recipient economies.
Published: Bruno, Valentina & Shin, Hyun Song, 2015. "Capital flows and the risk-taking channel of monetary policy," Journal of Monetary Economics, Elsevier, vol. 71(C), pages 119-132. citation courtesy of