[Session 2: Policy Implications for Small Open Economies]

This session will review policy experiences related to capital flow management around the world, and discuss macroprudential responses to the increased volatility in the international financial markets including Korea’s foreign exchange-related macroprudential policies since 2010. How can an open economy that is deeply interconnected with the major economies in both trade and its capital markets achieve monetary policy independence and sound macroeconomic outcomes? The experiences since the mid-1990s with capital controls will be discussed as well.

Moderator

 
Kwanho Shin 
Professor, Korea University

Speakers 

Joseph Gagnon 
Senior Fellow, PIIE
"Monetary Policy Independence in Small and Medium-sized Open Economies“

Joo Yong Lee 
Economist, BOK
"Estimating the Effects of FX-Related Macroprudential Policies in Korea"

Tae Soo Kang 
Senior Research Fellow, KIEP
"Global Market Volatility and Cross Border Capital Flows: How Should Emerging Markets Respond?"

Michael Klein 
Professor, Tufts University
"Characterizing Capital Controls"

Discussants 

Jose de Gregorio 
Professor, University of Chile and PIIE

Jun Il Kim 
Advisor, IMF