Download publication

Book

EU-Korea Economic Exchange

Articles published during the Bruegel/Korea Institute of Finance project on ‘EU-Korea policy responses to the global financial and economic crisis and the scope for internationalisation of the financial services industry’

By: , , , , , , , , , , , , , , and Date: April 22, 2013

Even though the roots of the global financial crisis lay in risky financial structures in the United States and weaknesses in financial regulation, the crisis became global mainly because of significant financial and trade linkages between the US and other countries. Most countries, including European Union countries and Korea, have felt the impact of the global crisis. The major channels through which the global crisis transmitted to the EU economy seems to be related to the internationalisation of the financial services industry and financial interlinkages, while in Korea the trade channel was more important.

There was a striking difference between the ways in which the EU and Korea were affected by the global financial and crisis. While the initial shock was broadly similar after the collapse of Lehman Brothers in September 2008, Korea recovered very quickly and output in 2013 is expected to exceed by more than 18 percent the 2007 output level. But the EU’s output is still expected to fall behind the pre-crisis value. The current mild impact of the crisis on Korea is in contrast to the harsh impact of the Asian crisis in the late 1990s, when Korean output fell significantly in 1998, though it recovered quickly after 1999.

Based on these observations, we launched a research project to learn from each other by studying the crisis response in the EU and Korea, and the potential for internationalisation of the financial services industry in the EU and Korea. This research was supported by the European Commission, for which we are grateful.

We organised two major conferences, one in Brussels on Global financial services integration on 16 April 2012, and one in Seoul on The Eurozone crisis and its impact on the global economy on 16 January 2013. We published four newsletters with various articles related to our research themes. This e-book collects our contributions to this project and presents the conference summaries.

Zsolt Darvas, Bruegel April 2013

Download Publication

EU-Korea Economic Exchange

Book

EU-Korea Economic Exchange

3h read (104 pages)

Download publication

Topics

Comments

Read article More on this topic More by this author

Blog Post

Marek Dabrowski

Belarus: time to reform

Belarus must speed up its transition to a market economy, in order to return to growth and to avoid a new balance of payments crisis. But such reform will face economic, social and political challenges

By: Marek Dabrowski Topic: Global Economics & Governance Date: February 1, 2016
Read article More on this topic More by this author

Opinion

Alicia García-Herrero

China is running out of options as foreign reserves drop

The Chinese are watching a new storm unfold in their financial markets, only months after having been bombarded with news about China’s “historical victory” when the Renminbi was designated an official reserve currency under the IMF’s SDR regime in November.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: January 21, 2016
Read article Download PDF More on this topic More by this author

Policy Contribution

Belarus at a crossroads

Belarus at a crossroads

Despite the slow pace of market reforms, the Belarusian economy recorded quite impressive growth until recently. However the Belarus growth ‘miracle’ cannot be continued, and the reforms that are needed might be difficult to implement. The potential hardship facing Belarus could be at least partly cushioned by external assistance.

By: Marek Dabrowski Topic: Global Economics & Governance Date: January 21, 2016
Read about event More on this topic

Past Event

Past Event

The new silk road: what is in it for Europe

How will the new Silk Road initiative affect the European economy?

Speakers: Jean-Francois Di Meglio, Pedro Nueno, Alicia García-Herrero, Elton Huang, David Gosset, Juan Carlos Martinez Oliva, Michael McCannon, Gary Liu, Edith Terry, Caspar Welbergen, Kar-yiu Wong, Jianwei Xu, Xu Sitao, Xue Li, Zhang Xiaoqiang and Zhao Jinping Topic: Global Economics & Governance Location: Shanghai Date: January 14, 2016
Read article More on this topic More by this author

Opinion

Ashoka Mody

Another slow year for the global economy

The factors that dragged down the global economy in 2015 will persist – and in some cases even intensify – in the new year.

By: Ashoka Mody Topic: Global Economics & Governance Date: January 5, 2016
Read article More on this topic More by this author

Opinion

Alicia García-Herrero

Indebted ASEAN companies will feel Fed's rate rise

While the markets could not have been surprised about the U.S. Federal Reserve's decision to raise interest rates after a series of warnings since mid-2013, the key question is whether Asia is ready.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: December 22, 2015
Read article More by this author

Blog Post

Marek Dabrowski

The impact of the oil-price shock on net oil exporters

In the second half of 2014 and early 2015, international oil prices approximately halved. What have been the consequences of this sharp decline on net oil exporters, and what have been their policy responses?

By: Marek Dabrowski Topic: Energy & Climate, Global Economics & Governance Date: November 24, 2015
Read article More on this topic More by this author

Blog Post

Jérémie Cohen-Setton

The persistence of slow growth

What’s at stake: The persistence of slow economic growth in the Great Recession has been puzzling. Two recent papers have tried to present a coherent framework for understanding this phenomenon. The first paper argues that we may have underestimated the importance of hysterisis effects. The second paper argues the global safe asset shortage cannot be resolved by lower world interest rates once we reach the zero lower bound. It is instead dissipated by a world recession that rebalances global asset markets.

By: Jérémie Cohen-Setton Topic: Global Economics & Governance Date: November 16, 2015
Read about event

Past Event

Past Event

Diversifying funding for growth in transition countries

Debt levels in transition economies have risen by 25% relative to GDP since the financial crisis, yet there is still a huge gap in growth-friendly investment. Which financial tools could offer the region the diversified funding needed to support convergence?

Speakers: Çağatay Bircan, Zsolt Darvas and Hans Peter Lankes Topic: Finance & Financial Regulation, Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: November 13, 2015
Read article Download PDF

Policy Contribution

Is globalisation reducing the ability of central banks to control inflation?European Parliament

Is globalisation reducing the ability of central banks to control inflation?

This Policy Contribution reviews the impact of globalisation on inflation dynamics, and it analyses whether and how this affects the ability of central banks to influence inflation.

By: Grégory Claeys and Guntram B. Wolff Topic: European Macroeconomics & Governance, European Parliament, Global Economics & Governance, Parliamentary Testimonies Date: November 12, 2015
Read article More on this topic More by this author

Blog Post

Alicia García-Herrero

Brazil: playing with fire

Rattled by political turmoil and in the midst of severe stagflation, Brazil is really ‘playing with fire’. Urgent measures are needed to reduce the fiscal deficit along with key structural reforms to reduce the size of the government.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: November 6, 2015
Read article More by this author

Blog Post

Jérémie Cohen-Setton

QE and investment

What’s at stake: Quantitative Easing has been criticized for generating inflation risks, financial stability risks, and distributional risks. The newest criticism from Kevin Warsh, a former Fed Governor, and the 2001 Nobel Prize laureate Michael Spence is that QE actually reduced investment!

By: Jérémie Cohen-Setton Topic: European Macroeconomics & Governance, Global Economics & Governance Date: November 2, 2015
Load more posts