The Real Consequences of Macroprudential FX Regulations
نویسندگان
چکیده
I exploit a natural experiment in South Korea to examine the real effects of macroprudential foreign exchange (FX) regulations designed reduce risk-taking by financial intermediaries. By using crossbank variation regulation's tightness, show that it causes reduction supply FX derivatives (FXD) and results substantial decline exports for firms were heavily relying on FXD hedging. offer mechanism which imbalances hedging demand, banks' costly equity financing, firms' switching banking relationships play central role explaining empirical findings.
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3949884