Macroprudential Policies in Open Emerging Economies

Paper presented at the 2011 Federal Reserve Bank of San Francisco Asia Economic Policy Conference. We are grateful to Anil Kashyap for his comments as discussant. We also thank Yongwhan Jung for his excellent research assistance. This paper is a shorter version of the report with the same title prepared for the Bank of Korea. We gratefully acknowledge the financial support of the Bank of Korea. All views expressed in this paper are those of the authors and not necessarily of the Bank of Korea, Columbia University, or the National Bureau of Economic Research. Joon-Ho Hahm is a Professor of International Economics and Finance at the Graduate School of International Studies, Yonsei University. Frederic Mishkin is the Alfred Lerner Professor of Banking and Financial Institutions at the Graduate School of Business, Columbia University, and a Research Associate at the National Bureau of Economic Research. Hyun Song Shin is Hughes-Rogers Professor of Economics at Princeton University. Kwanho Shin is a Professor of Economics at Korea University. Disclosure of Mishkin and Shin's outside compensated activities can be found at http://www0.gsb.columbia.edu/faculty/fmishkin/OUTSIDEACTIVITIES.pdf and http://www.princeton.edu/~hsshin/biographical.html, respectively.