S-Space Graduate School of International Studies (국제대학원) Dept. of International Studies (국제학과) Theses (Master's Degree_국제학과)
Effectiveness of Macroprudential Policies in Preventing Volatile Capital Flows: A Focus on Emerging Asia
거시건전성 정책이 불안정한 자본흐름에 미치는 영향: 아시아 신흥국을 중심으로
- Rhee, Yeongsup
- 국제대학원 국제학과
- Issue Date
- 서울대학교 국제대학원
- capital flows; macroprudential policy; Asian financial crisis; global financial crisis; emerging economies
- 학위논문 (석사)-- 서울대학교 국제대학원 : 국제학과(국제통상전공), 2015. 8. 이영섭.
- The global financial crisis reinforced the extent to how globalized and interwoven our economies and financial systems are. The economic downturn thereafter highlighted to policymakers the new challenges we face in the global era, and the fundamental lack of understanding of system-wide risk. In response to these challenges, policymakers realized the need to go beyond purely microprudential approach to financial regulation, which evolved into a growing consensus that a macroprudential approach to regulation and supervision is necessary.
While the clear guidelines and toolkits of macroprudential policies are still being defined by the academic world, this paper takes a preliminary look at the effect of macroprudential policies, specifically in protecting small open economies in Southeast Asia from the volatility of capital flows. Specifically, I focus on the countries that experienced the Asian financial crisis as there are literature expressing these countries' resilience from the global economic crisis due to the many structural and financial reforms that were required under the IMF conditionalities.
The results show that emerging economies in general became less sensitive to "push" factors which drive capital flows after the implementation of macroprudential policy. However, countries that experienced the Asian financial crisis grow to be more sensitive to global conditions, in contrast to the comparison group of countries.