Jump to ContentJump to Main Navigation
How Finance Is Shaping the Economies of China, Japan, and Korea$
Users without a subscription are not able to see the full content.

Hugh Patrick and Yung Chul Park

Print publication date: 2013

Print ISBN-13: 9780231165266

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231165266.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 15 June 2021

Banking, Capital Flows, and Financial Cycles

Banking, Capital Flows, and Financial Cycles

Common Threads in the 2007–2009 Crises

(p.302) Chapter Five Banking, Capital Flows, and Financial Cycles
How Finance Is Shaping the Economies of China, Japan, and Korea

Young-Hwa Seok

Hyun Song Shin

Columbia University Press

This chapter considers the phenomenon of financial globalization. This type of globalization is organized within the role of financial intermediaries, especially banks, in the proliferation of financial cycles. Firstly, this chapter reviews the merits of financial globalization with particular attention to the effects of unhindered capital flows. Secondly, it analyzes these effects against the financial system as a whole of the balance sheet management done by the financial intermediaries, after which the next section applies these insights to four certain episodes; namely, the 2008 liquidity crisis in Korea, Japans experience in the 1980s, US financial crisis of 2007–2009, and the European crisis that began in 2010. The chapter concludes with an emphasis on the importance of macro-prudential policies.

Keywords:   financial globalization, financial intermediaries, banks, financial cycles, capital flows, 2008 liquidity crisis, 1980s, US financial crisis, European financial crisis, macro-prudential policies

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .