Macroprudential Policies in Open Emerging Economies

62 Pages Posted: 27 Jan 2012

See all articles by Joon-Ho Hahm

Joon-Ho Hahm

Yonsei University - Graduate School of International Studies

Frederic S. Mishkin

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

Hyun Song Shin

Bank for International Settlements (BIS)

Kwanho Shin

Korea University

Date Written: January 2012

Abstract

This paper examines macroprudential policies in open emerging economies. It discusses how the recent financial crisis has provided a rationale for macroprudential policies to help manage the economy and the need for policymakers to monitor the financial cycle and systemic risks. It also discusses one particularly promising measure of the state of the financial cycle, the growth of non-core liabilities of the financial sector, and evaluates macroprudential policy frameworks. The paper uses Korea as an example and conducts an empirical evaluation of non-core liabilities of Korean banks as a measure of the financial cycle.

Suggested Citation

Hahm, Joon-Ho and Mishkin, Frederic S. and Shin, Hyun Song and Shin, Kwanho, Macroprudential Policies in Open Emerging Economies (January 2012). NBER Working Paper No. w17780. Available at SSRN: https://ssrn.com/abstract=1992818

Joon-Ho Hahm (Contact Author)

Yonsei University - Graduate School of International Studies ( email )

Seoul
Korea

Frederic S. Mishkin

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Hyun Song Shin

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

HOME PAGE: http://www.bis.org/author/hyun_song_shin.htm

Kwanho Shin

Korea University ( email )

1 Anam-dong 5 ka
Sunbuk-Ku, Department of Economics
Seoul 136-701
Korea
82-2-3290-2220 (Phone)
82-2-3290-2719 (Fax)

HOME PAGE: econ.korea.ac.kr/~khshin

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