Time:1.2 12:00-14:00
location:A1028
Title: Financial Openness, Bank Capital Flows, and the Effectiveness of Macroprudential Policies
Presenter:Jin Hao
Abstract：
This paper quantitatively examines the effects of macroprudential policies on credit growth in open economies. We develop a small open economy DSGEmodel where banks choose their funding sources (domestic vs. foreign deposits) and subject to financial constraints. Our model predicts that banks reduce leverage in response to a macroprudential policy tightening, but they increasingly rely on foreign funding. This endogenous liability composition shifts significantly undermine the stabilizing effect and welfare gains of macroprudential policies. Our results suggest macroprudential policies are less effective and should be set more aggressive in financially more open economies. Finally, we find empirical support for the model predictions in a group of developing and emerging economies.
Introduction：
Hao Jin obtained Ph.D. in economics from Indiana University, and is currently an assistant professor in economics at Wang Yanan Institute for Studies in Economics (WISE), Xiamen University. His research areas include macroeconomics, monetary and fiscal policy, and open economy macroeconomics. He has published papers in leading journals such as《Review of Economic Dynamics》,《China Industrial Economics》among others. He also has working papers under R&R at《Journal of International Money and Finance》,《Macroeconomic Dynamics》,《Economic Research Journal》、《China Economic Quarterly》. He serves as referees for《Journal of International Money and Finance》,《China Economic Quarterly》,《China Industrial Economics》.
