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We examine how Korea's capital flows and trade have been affected by the quantitative easing (QE) of the United States and the quantitative and qualitative easing (QQME) of Japan. Korea is an intriguing case due to its borderline position between advanced and emerging market country groups, and...
Persistent link: https://www.econbiz.de/10013055255
. Their analysis has three main findings. First, during periods of active TAF borrowing, foreign affiliates of parent banks … with high US dollar funding needs reduced their foreign assets by less. They identify those parents based on their pre …-crisis exposure to the US asset-backed commercial paper (ABCP) market. Second, foreign affiliates in financial centers also shrank …
Persistent link: https://www.econbiz.de/10011535670
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It is well known that a tightening or easing of the United States' monetary policy affects financial markets in emerging economies. This paper argues that uncertainty about future monetary policy is a separate transmission channel. We focus on the taper tantrum episode in 2013, a period with an...
Persistent link: https://www.econbiz.de/10011546623
We make the first attempt in the literature to empirically examine the spillover effects of U.S. monetary policy on trade in other countries. In a large sector-level bilateral trade dataset of 137 countries for the years 1970-2000, we find strong and robust evidence supporting an international...
Persistent link: https://www.econbiz.de/10013024617
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This paper first reviews the trade structure between China and the Republic of Korea (hereafter referred as Korea) and the two countries' international capital flow. Then it discusses the effect of the Federal Reserve rate on UIP in both China and Korea, which turns out to be uninfluential...
Persistent link: https://www.econbiz.de/10012991611
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Three years have passed since the Bank of Japan's asset purchase program was introduced in 2011, causing a sharp decline in the value of the Japanese Yen. What would be the implications for Japan and Korea's exporters if the weak Yen is here to stay? We explore this question by examining...
Persistent link: https://www.econbiz.de/10013016594