Woon Gyu Choi's Books

Policy Conflicts and Inflation Targeting: The Role of Credit Markets

By: Woon Gyu Choi,Mr.David Cook

Write a review Read reviews Take a Quiz Solve Book Puzzle

Policy Conflicts and Inflation Targeting: The Role of Credit Markets

By: Woon Gyu Choi,Mr.David Cook

This paper shows that stabilizing volatility in credit growth often conflicts with price stability: unusual credit expansions often occur when inflation is low relative to goals, and credit slumps often appear when inflation is overshooting. We find that central banks with inflation targeting (IT) are responsive to credit conditions in both advanced economies and emerging-market economies (EMEs). However, EMEs are more sensitive to inflation conditions, responding to credit growth only when consistent with IT. Macroprudential measures are also deployed to address credit growth volatility when orthodox policy moves would be inconsistent with IT, complementing monetary policy.

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

148435124X

ISBN 13

9781484351246

Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses

By: Woon Gyu Choi,Taesu Kang,Geun-Young Kim,Byongju Lee

Write a review Read reviews Take a Quiz Solve Book Puzzle

Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses

By: Woon Gyu Choi,Taesu Kang,Geun-Young Kim,Byongju Lee

This paper distills and identifies global liquidity (GL) momenta from the macro-financial data of advanced economies through a factor model with sign restrictions as policy-driven, market-driven, and risk averseness factors. Using a panel factor-augmented VAR, we investigate responses of emerging market economies (EMEs) to GL shocks. A policy-driven liquidity increase boosts growth in EMEs, elevating stock prices and currency values, while a risk averseness rise has an opposite effect. A market-driven GL expansion boosts stock markets and lowers funding costs, promoting competitiveness and current account. Inflation targeting EMEs fare better than EMEs under alternative regimes with respect to macrofinancial volatility.

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

1484326458

ISBN 13

9781484326459

Trade Credit and the Effect of Macro-Financial Shocks

Evidence From U.S. Panel Data

By: Mr.Yungsan Kim,Woon Gyu Choi

Write a review Read reviews Take a Quiz Solve Book Puzzle

Trade Credit and the Effect of Macro-Financial Shocks

Evidence From U.S. Panel Data

By: Mr.Yungsan Kim,Woon Gyu Choi

Many studies examine why firms are financed by their suppliers, but few empirical studies look at the macroeconomic implications of such financial arrangements. Using disaggregated panel data, we examine how firms extend and use trade credit. We find that, controlling for the transactions or asset management motive, both accounts payable and receivable increase with tighter policy, implying that trade credit helps firms absorb the effect of a credit contraction. A comparison of S&P 500 firms with smaller firms, however, provides no evidence that when policy is tightened, large firms play the role of credit suppliers more actively than small firms.

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

1451855001

ISBN 13

9781451855005

Dissecting Taylor Rules in a Structural VAR

By: Woon Gyu Choi,Yi Wen

Write a review Read reviews Take a Quiz Solve Book Puzzle

Dissecting Taylor Rules in a Structural VAR

By: Woon Gyu Choi,Yi Wen

This paper uncovers Taylor rules from estimated monetary policy reactions using a structural VAR on U.S. data from 1959 to 2009. These Taylor rules reveal the dynamic nature of policy responses to different structural shocks. We find that U.S. monetary policy has been far more responsive over time to demand shocks than to supply shocks, and more aggressive toward inflation than output growth. Our estimated dynamic policy coefficients characterize the style of policy as a "bang-bang" control for the pre-1979 period and as a gradual control for the post-1979 period.

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

1451962290

ISBN 13

9781451962291

Fire Sales and the Financial Accelerator

By: Woon Gyu Choi,Mr.David Cook

Write a review Read reviews Take a Quiz Solve Book Puzzle

Fire Sales and the Financial Accelerator

By: Woon Gyu Choi,Mr.David Cook

During periods of financial turmoil, increases in risk lead to higher default, foreclosure, and fire sales. This paper introduces a costly liquidation process for foreclosed collateral and endogenous recovery rates in a dynamic stochastic general equilibrium model of the financial accelerator. Consistent with empirical evidence, we find that recovery rates are pro-cyclical when collateral is costly to liquidate. Through links between recovery rates, risk premia, and default risk, the model generates an additional liquidity spiral, a feedback loop for the financial accelerator. We illustrate how collateral liquidation and monetary policy alter the impacts of a financial shock. We also show that a government subsidy on collateral liquidity and the endogenous accumulation of liquidity inventory help dampen the liquidity spiral by shoring up recovery rates.

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

1455201243

ISBN 13

9781455201242

Macroprudential Policy and Bank Systemic Risk: Does Inflation Targeting Matter?

By: Mohamed Belkhir,Sami Ben Naceur,Bertrand Candelon,Woon Gyu Choi,Farah Mugrabi

Write a review Read reviews Take a Quiz Solve Book Puzzle

Macroprudential Policy and Bank Systemic Risk: Does Inflation Targeting Matter?

By: Mohamed Belkhir,Sami Ben Naceur,Bertrand Candelon,Woon Gyu Choi,Farah Mugrabi

This paper investigates macroprudential policy effects on bank systemic risk and the role of inflation targeting in such effects. Using bank-level data for 45 countries comprising various monetary and exchange rate regimes, our regime-dependent dynamic panel regression results point to complementarities between monetary and macroprudential policies. We find that the tightening of most macroprudential tools—including DSTI and LTV limits, and capital requirements—reduces bank systemic risk further under inflation targeting. Our findings lend credence to the view that inflation targeting strengthens macroprudential policy roles in mitigating financial stability risks.

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 13

9798400245008

Loose Financial Conditions, Rising Leverage, and Risks to Macro-Financial Stability

By: Mr. Adolfo Barajas,Woon Gyu Choi,Ken Zhi Gan,Pierre Guérin,Samuel Mann,Manchun Wang,Yizhi Xu

Write a review Read reviews Take a Quiz Solve Book Puzzle

Loose Financial Conditions, Rising Leverage, and Risks to Macro-Financial Stability

By: Mr. Adolfo Barajas,Woon Gyu Choi,Ken Zhi Gan,Pierre Guérin,Samuel Mann,Manchun Wang,Yizhi Xu

After a steady increase following the global financial crisis, private nonfinancial sector leverage rose further during the COVID-19 on the back of easy financial conditions induced by unprecedented policy support. We investigate the empirical relationships between increased leverage, financial conditions, and macro-financial stability in a sample of major advanced and emerging market economies. We find that loose financial conditions contribute to leverage buildups and generate an intertemporal tradeoff: financial stability risk is lessened in the near term but exacerbated in the medium term. The tradeoff is amplified during credit booms, when debt service burdens are particularly high, or when the share of foreign currency debt is high in emerging markets. Selected macroprudential tools can arrest leverage buildups and mitigate the tradeoff.

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

1513591487

ISBN 13

9781513591483

Monetary Transmission of Global Imbalances in Asian Countries

By: Mr.Il Houng Lee,Woon Gyu Choi

Write a review Read reviews Take a Quiz Solve Book Puzzle

Monetary Transmission of Global Imbalances in Asian Countries

By: Mr.Il Houng Lee,Woon Gyu Choi

The paper explores the linkages between the global and domestic monetary gaps, and estimates the effects of monetary gaps on output growth, inflation, and net saving rates using panel data for 20 Asian countries for 1980-2008. We find a significant pass-through of the global monetary gap to domestic monetary gaps, which in turn affect output growth and inflation, in individual emerging market and developing countries in Asia. Notably, we provide evidence that the global monetary condition is partly responsible for the current account surplus in Asia. We also draw implications for monetary policy coordination for global rebalancing.

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

1455205451

ISBN 13

9781455205455

Monetary Transmission of Global Imbalances in Asian Countries

By: Mr.Il Houng Lee,Woon Gyu Choi

Write a review Read reviews Take a Quiz Solve Book Puzzle

Monetary Transmission of Global Imbalances in Asian Countries

By: Mr.Il Houng Lee,Woon Gyu Choi

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

1455205451

ISBN 13

9781455205455

Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses

By: Woon Gyu Choi,Taesu Kang,Geun-Young Kim,Byongju Lee

Write a review Read reviews Take a Quiz Solve Book Puzzle

Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses

By: Woon Gyu Choi,Taesu Kang,Geun-Young Kim,Byongju Lee

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

1484326458

ISBN 13

9781484326459

Stock Market Liquidity and the Macroeconomy

Evidence from Japan

By: Mr.David Cook,Woon Gyu Choi

Write a review Read reviews Take a Quiz Solve Book Puzzle

Stock Market Liquidity and the Macroeconomy

Evidence from Japan

By: Mr.David Cook,Woon Gyu Choi

In a liquid financial market, investors are able to sell large blocks of assets without substantially changing the price. We document a steep drop in the liquidity of the Japanese stock market in the post-bubble period and a steep rise in liquidity risk. We find that, during Japan's deflationary period, firms with more liquid balance sheets were less exposed to stock market liquidity risk, while slowly growing firms were highly exposed to liquidity shocks. Also, aggregate liquidity had macroeconomic effects on aggregate demand through its effect on money demand.

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

INTERNATIONAL MONETARY FUND

Published Date

ISBN 10

1451860250

ISBN 13

9781451860252

Policy Conflicts and Inflation Targeting: The Role of Credit Markets

By: Woon Gyu Choi,Mr.David Cook

Write a review Read reviews Take a Quiz Solve Book Puzzle

Policy Conflicts and Inflation Targeting: The Role of Credit Markets

By: Woon Gyu Choi,Mr.David Cook

Average ratings

N/A

Write a review

Solve jigsaw puzzle

Age

Page Count

Publisher

International Monetary Fund

Published Date

ISBN 10

148435124X

ISBN 13

9781484351246

Book's by Woon Gyu Choi

Policy Conflicts and Inflation Targeting: The Role of Credit Markets

Policy Conflicts and Inflation Targeting: The Role of Credit Markets

Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses

Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses

Trade Credit and the Effect of Macro-Financial Shocks

Trade Credit and the Effect of Macro-Financial Shocks

Dissecting Taylor Rules in a Structural VAR

Dissecting Taylor Rules in a Structural VAR

Fire Sales and the Financial Accelerator

Fire Sales and the Financial Accelerator

Macroprudential Policy and Bank Systemic Risk: Does Inflation Targeting Matter?

Macroprudential Policy and Bank Systemic Risk: Does Inflation Targeting Matter?

Loose Financial Conditions, Rising Leverage, and Risks to Macro-Financial Stability

Loose Financial Conditions, Rising Leverage, and Risks to Macro-Financial Stability

Monetary Transmission of Global Imbalances in Asian Countries

Monetary Transmission of Global Imbalances in Asian Countries

Monetary Transmission of Global Imbalances in Asian Countries

Monetary Transmission of Global Imbalances in Asian Countries

Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses

Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses

Stock Market Liquidity and the Macroeconomy

Stock Market Liquidity and the Macroeconomy

Policy Conflicts and Inflation Targeting: The Role of Credit Markets

Policy Conflicts and Inflation Targeting: The Role of Credit Markets

Username

Password

Username

Password

Password again

Birthday

Email