Safe-Haven Korea? - Spillover Effects from UMPs

 
Author/Editor: Jack Ree ; Seoeun Choi
 
Publication Date: April 03, 2014
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: 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 the common perception that Korea competes fiercely with Japan in the world market for trade. We find that QE had little direct impact on capital flows to Korea, and tapering is unlikely to cause capital outflows from it owing to partial safe-haven behavior of capital flows to Korea. We also find that the exchange rate spillover from QQME to Korea has been limited both on trade and capital flow fronts.
 
Series: Working Paper No. 14/53
Subject(s): Spillovers | Korea, Republic of | Capital flows | Monetary policy | Japan | United States | Trade integration | Exports | Exchange rates | Economic integration

 
English
Publication Date: April 03, 2014
ISBN/ISSN: 9781484349878/1018-5941 Format: Paper
Stock No: WPIEA2014053 Pages: 35
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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