Marshall Islands and Federated States of Micronesia |
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| Author:
| Saito, Kunio
Meesook, Kanitta
Park, Hail
Ree, Jack
Yoon, Kyoungsoo |
| Contribution by:
| International Monetary Fund Staff, |
| Series title: | IMF Working Papers |
| ISBN: | 978-1-55775-552-0 |
| Publication Date: | Nov 2012 |
| Publisher: | International Monetary Fund
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| Book Format: | Ebook |
| List Price: | Contact Supplier contact
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Book Description:
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This paper examines how exchange rate volatility and Korean banks' foreign exchange liquidity mismatches interacted with each other during the Global Financial Crisis, and whether the vulnerability stemming from this interaction has been reduced since then. Structural and cyclical changes after the crisis, including decreasing demand for currency hedges and the diversifying investor base for bonds, point to a possible weakening of the interaction mechanism; and we find evidences are...
More DescriptionThis paper examines how exchange rate volatility and Korean banks' foreign exchange liquidity mismatches interacted with each other during the Global Financial Crisis, and whether the vulnerability stemming from this interaction has been reduced since then. Structural and cyclical changes after the crisis, including decreasing demand for currency hedges and the diversifying investor base for bonds, point to a possible weakening of the interaction mechanism; and we find evidences are strongly supportive of this.