‘Sleeping With the Enemy’or ‘An Ounce of Prevention’: Sovereign Wealth Fund Investments and Market Destabilization  

April Knill, Bong-Soo Lee, Nathan Mauck
Florida State University

Outli

• Motivation
• Research questions
• Methodology
• Results
• Conclusion

Reply to Dr. Jun Il Kim’s Comments on Sovereign Wealth Meets Market Failures

  Sang Yong Park
Comments regarding MWF

• Surplus countries’incentive to participate in MWFs?
   
• Long-run benefits of MWFscould be achieved by other available means at a lower cost. => Exaggerationof short-term cost due to three misconceptions in the paper
  
  -Would the world economy have looked much different from now if China had invested in a diversified portfolio instead of putting all eggs in the same basket?
  
  -Will the financial sector bailout put the US public debt on an unsustainable path and pose the expropriation risk?
  
  -Could surplus countries avoid or reduce the risk of expropriation if their claims on the US government are converted into US bank equities?

Foreign Exchange Liquidity Pressures in Korea: Recent Experiences Lessons

Gwang-Ju Rhee
Deputy Governor, The Bank of Korea

　　1. Korea FX Liquidity Developments after Lehman Brothers Failure

　　2. Main Causes of the FX Liquidity Pressures

　　3. Policy Responses and Assessment

　　4. Policy Challenges Ahead