Hyun Song Shin on capital flows to emerging market economies and “Original Sin Redux”


On Monday, April 20, 2020, Hyun Song Shin joined the Princeton Bendheim Center for Finance for a webinar on capital flows to emerging market economies. Shin is the Economic Adviser and Head of Research at the Bank for International Settlements in Basel, Switzerland.The webinar began with introductions by Markus Brunnermeier, Director of Princeton’s Bendheim Center for Finance.

Learn more about the COVID-19 webinar series organized by Markus Brunnermeier: https://bcf.princeton.edu/event-directory/covid19/

Jump to video chapters:

Markus Brunnermeier introduction: 0:00
Beginning of Song Shin presentation: 21:23
Lenders lend to their own currency: 23:15
Private sector borrowers are subject to the “original sin”: 24:06
Canadian corporate bond issuance: 24:34
Exception is the US and US dollar: 27:14
US Corporate bonds issuance: 27:32
Liabilities side of lenders balance sheet looms into view: 28:28
Audience Questions/Clarifications: 30:40
Lessons from the 1990s EME financial crises: 33:46
Overcoming original sin: 35:16
Duration measures: 40:28
EME local currency sovereign bond returns, January 2013 – October 2018: 43:18
Advanced economies sovereign bond returns, January 2013 – October 2018: 48:40
Domestic Market Lenders Questions: 50:24
Covid-19 Shock in March: 53:07
Foreign ownership in EME local currency bond markets: 54:19
US dollar and local currency returns vis-â-vis yield changes: 59:50
Monetary policy frameworks: 1:00:20