After the global financial crisis, the International Monetary Fund (IMF) recognized capital controls as an effective policy tool for managing excessive capital flows in emerging countries, while still advocating for free capital movement. As a result, capital controls have become a prominent research topic in the field of international finance. My previous research has analyzed the effectiveness of capital controls in advanced and emerging economies using dynamic stochastic general equilibrium (DSGE) macroeconomic models and empirical methods based on local projections. Specifically, I have worked on three topics: (1) whether capital controls affect housing prices, (2) to what extent China's capital controls have impacted its capital flows and economic growth distribution, and (3) how capital regulations in other asset markets have affected capital flows.
Current research projects
In the uncertain post-COVID world economy, I am conducting research on macroeconomic issues facing emerging markets, particularly on the current situation of volatile international capital flows and macroeconomic policies. Specifically, (1) empirical research thus far has been limited in its ability to fully elucidate the effects of capital controls due to dataset restrictions. Therefore, I will construct a more granular capital control dataset for emerging countries through on-site and online surveys. (2) Using the constructed capital control dataset, I will evaluate the effects of capital controls on capital flows (and capital flow-at-risk) in emerging markets. (3) I will verify the policy effects of capital controls and macroprudential policies using empirical methods that consider the events of COVID, and analyze the effects of these policies. (4) I will construct a theoretical "Pandemic Small Open Economy Macroeconomic Model" that the policy effects can be evaluated in terms of welfare level.