Safe-Haven Korea? - Spillover Effects from UMPs

April 3, 2014

Preview Citation

Format: Chicago

Jack J Ree, and Seoeun Choi. Safe-Haven Korea? - Spillover Effects from UMPs, (USA: International Monetary Fund, 2014) accessed December 21, 2024

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.

Subject: Balance of payments, Bonds, Capital flows, Exchange rates, Exports, Financial institutions, Foreign exchange, International trade, Monetary policy, Stocks, Unconventional monetary policies

Keywords: Asia and Pacific, Bonds, Capital flow, Capital flows, Exchange rates, Exports, Foreign Value-Added, Global, Korea's export, Korea's gain Japan's loss, Market share gain, QE exit, Safe-haven Korea, Spillover, Trade, Unconventional monetary policies, Unconventional monetary policy, Value chain, World market share, WP, Yield curve

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/053
Stock No:

WPIEA2014053
ISBN:

9781484349878
ISSN:

1018-5941

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