Department of Economics

Faculty of Arts and Social Sciences


Seminar - Upcoming

2013 Asia Summer Institute in Behavioral Economics
Asian Meeting of the Econometric Society 2013
Past Events
Department Seminar


Financial Openness, Bank Capital Flows and the Effectiveness of Macroprudential Policies


Hao Jin
Xiamen University

Date: Dec 11, Mon

Time: 4 - 5:30 pm

Venue: Lim Tay Boh Seminar Room (AS2 03-12)
National University of Singapore
1 Arts Link, Singapore 117570


Ma Lin


We study the macroeconomic and welfare implications of macroprudential policies in a small open economy DSGE model with cross-border bank financing. Consistent with the empirical evidence, our model shows macroprudential policies that regulate the overall financing of banks lower the growth in credit, but result in more cross-border bank borrowing and are thus less effective in financially more integrated economies. On the other hand, in financially more developed economies, financial openness does not affect the effectiveness of macroprudential policies.