The heated debates over the QE tapering and the Fed government shutdown in the US suggest that there will be many obstacles on the path to the global economic recovery. In particular, uncertainties over the timing of the QE tapering might set off a financial market tsunami with turbulent capital...

A small, open macro model with new transmission channels is developed to account for the post-crisis structural changes and to evaluate various policy rules for inflation targeting. Given significant changes in transmission channels and the lingering fragility in the financial sector, policy...

[enter Abstract Body]A rapid macroeconomic turnaround and lingering financial market uncertainties in Korea are seen as conflicting but consistent indicators of the fundamental weakness in financial markets. Drastic changes in firms' financing strategy, volatile capital movements, and loose...

The post-global financial crisis highlighted the importance of engaging in collateralized securities financing to meet the ever-increasing market needs for liquidity and risk management. Given the heavy reliance on volatile Eurodollar system and the fragmented governance and limited cross-border...

A small, open macroeconomic model that accounts for new financial accelerator effects (the effects of fluctuations in asset prices on bank credit and economic activity) is developed to evaluate various policy rules for inflation targeting. Given conditions in asset markets and the fragility of...

A small, open macroeconomic model that accounts for new financial accelerator effects (the effects of fluctuations in asset prices on bank credit and economic activity) is developed to evaluate various policy rules for inflation targeting. Given conditions in asset markets and the fragility of...