Assessing Macroprudential Policies: Case of South Korea
30 Pages Posted: 31 Dec 2013
Date Written: January 2014
In this paper, we develop methods for assessing the sensitivity of capital flows to global financial conditions. We use these methods to assess the impact of macroprudential policies introduced by South Korea in 2010. Relative to a comparison group of countries, we find that the sensitivity of capital flows into South Korea to global conditions decreased in the period following the introduction of macroprudential policies.
Keywords: Capital flows, credit booms, macroprudential policy
JEL Classification: F32, F33, F34
Suggested Citation: Suggested Citation