Abstract
External financial conditions provide the backdrop to domestic financial conditions, especially when the domestic banking system is open to funding from cross-border banks. An International Monetary Fund (IMF) report on capital flows (IMF, 2011) identifies three epochs of capital flows (see Figure 9.1), the first being the period of the fourth quarter of 1995 to the second quarter of 1998 associated with the Asian financial crisis, the period of the fourth quarter of 2006 to the second quarter of 2008 associated with the credit boom that led to the recent global financial crisis, and the most recent period in the aftermath of the crisis (the third quarter of 2009 to the second quarter of 2010).
This chapter originally appeared in “National Institute Economic Review, No. 221, July 2012, R44–R56.”
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References
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© 2014 Kyuil Chung, Soyoung Kim, Hail Park, Changho Choi, and Hyun Song Shin
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Chung, K., Park, H., Shin, H.S. (2014). Mitigating Systemic Spillovers from Currency Hedging. In: Chung, K., Kim, S., Park, H., Choi, C., Shin, H.S. (eds) Volatile Capital Flows in Korea. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137368768_9
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DOI: https://doi.org/10.1057/9781137368768_9
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