Bilateral trade between Korea and EU has been increasing with the exception of the period of the global financial crisis (2009) and Korea has enjoyed trade surplus since 1997. At the time when negotiations were launched for the Korea-EU FTA in 2007, EU was Korea's second largest trading partner...

Monetary policy shifts in advanced economies are transmitted to emerging market economies (EMEs) through monetary policy responses by EME central banks and changes in cross-border capital flows. The ripple effects, however, depend upon the EMEs' macroeconomic fundamentals and the amount and...

This paper studies how the strength of social ties are affected by the geographical location of other individuals and their social capital. We characterize the equilibrium in terms of both social interactions and social capital. We show that lower travel costs increase not only the interaction...

The global financial crisis has underscored the need to pay attention to contingent government liabilities that could arise from bank failures for sovereign risk management. This paper proposes a simple method to construct a contingent liability index (CLI) for a banking sector that takes into...

Asset allocation decisions of international investors are at the core of capital flows. This paper explores the impact of these decisions on long-term government bond yields, using a quarterly investor base dataset for 22 advanced economies over 2004-2012. We find that a one percentage point...

This paper proposes a simple method to estimate contingent liabilities that arise from (implicit and explicit) government guarantees to the banking sector. This method allows us to construct cross-country estimates on potential costs of bank failures. Furthermore, we empirically test whether the...

Recent events have shown that sovereigns, just like banks, can be subject to runs, highlighting the importance of the investor base for their liabilities. This paper proposes a methodology for compiling internationally comparable estimates of investor holdings of sovereign debt. Based on this...