View source for Hyun-Song Shin

{{Short description|South Korean economist (born 1959)}}
{{BLP sources|date=April 2014}}
{{family name hatnote|[[List of Korean family names|Shin]]||lang=Korean}}
{{Infobox economist
| name             = Hyun Song Shin
| school_tradition = Neoclassical economics
| image       = Hyun-Song Shin.jpg
| image_size       =
| caption    =
| birth_date       = {{birth year and age|1959}}
| birth_place      = [[Daegu]], South Korea
| death_date       =
| death_place      =
| institution      = [[Princeton University]]
| field            = [[Economic theory]], [[finance]]
| alma_mater       = [[Oxford University]]
| doctoral_advisor  = [[James Mirrlees]]
| academic_advisors =
| doctoral_students =
| notable_students  =
| influences       =
| influenced       =
| contributions    = [[global games]]
| awards           =
| signature        = <!-- file name only -->
| repec_prefix = f | repec_id = psh692
| module        = {{Infobox Korean name
| hangul = 신현송
| hanja =
| rr = Sin Hyeonsong
| mr = Sin Hyŏnsong
| child  = yes}}
}}
'''Hyun Song Shin''' ({{Korean|hangul=신현송}}; born 1959) is a South Korean [[Economic theory|economic theorist]] and financial economist who focuses on [[global games]]. He has been the Economic Adviser and Head of Research of the [[Bank for International Settlements]] (BIS) since May 1, 2014.<ref name=":0">{{Cite web|url = https://www.bis.org/author/hyun_song_shin.htm|title = Hyun Song Shin|accessdate = January 13, 2015|website = Bank for International Settlements}}</ref>
Previously, he was the Hughes-Rogers Professor of Economics at [[Princeton University]] since 2006, though he took a leave in December 2009 to advise South Korean President [[Lee Myung-bak]] on the [[international economy]] as well as help set the agenda for the [[2010 G-20 Seoul summit|G-20 Seoul summit]] in November 2010.<ref name=":0" />
== Education and career ==
Shin obtained a [[Bachelor of Arts|B.A.]] in [[philosophy, politics and economics]] at [[Oxford University]] ([[Magdalen College, Oxford|Magdalen College]]) in 1985, an [[MPhil]] in economics from Oxford's [[Nuffield College]] in 1987, and a [[DPhil]] in economics from Oxford's Nuffield College in 1988. Shin became a research fellow in 1988 and tutorial fellow in 1990 at Magdalen College, Oxford.
In 1994 he moved to the [[University of Southampton]], where he became a professor of economics. He moved back to [[Oxford]] in 1996 as a university lecturer in economics and faculty fellow in economics at Nuffield College. In 2000 he became a professor of finance at the [[London School of Economics]]. In 2006 he moved to Princeton University.
In addition to his academic positions, Shin served as an advisor to [[Bank of England]] (2000–2005) and is a member of the Financial Advisory Roundtable at the [[Federal Reserve Bank of New York]] and a panel member of the U.S. Monetary Policy Forum since 2007. He is a research fellow of the [[Centre for Economic Policy Research]] since 1998. Shin was the chairman of the editorial board of the ''[[Review of Economic Studies]]'' from 1999 to 2003. He collaborated with [[Isabel Schnabel]], comparing the [[Bankruptcy of Lehman Brothers]] with the bankruptcy of [[Leendert Pieter de Neufville]] in 1763.<ref>{{cite journal |last1=Schnabel |first1=Isabel |last2=Shin |first2=Hyun Song |author2-link=Hyun-Song Shin |title=Liquidity and Contagion: The Crisis of 1763 |journal=[[Journal of the European Economic Association]] |volume=2 |issue=6 |pages=929–968 |year=2004 |doi=10.1162/1542476042813887 }}</ref>
<ref>[http://cep.lse.ac.uk/pubs/download/CP150.pdf Lessons from the Seven Years War by Isabel Schnabel and Hyun Song Shin]</ref>
Shin was elected a Fellow of the [[Econometric Society]] and of the [[European Economic Association]] in 2004, and a Fellow of the [[British Academy]] in 2005. He was awarded the [[R. K. Cho Economics Prize]] in 2009.<ref>{{Cite news|url = http://lawschool.yonsei.ac.kr/htm_eng/news/news02_v.php?sid=30337&bConf=54&menuBid=&menuSid=&condition=&words=|title = Professor Shin Hyun-song Won the Cho Rakkyo Award|date = May 25, 2009|work = Yonsei University News}}{{Dead link|date=August 2024 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
In December 2009, Shin was named chief advisor to President Lee Myung-bak on international finance. He played a major role in formulating South Korea's [[macroprudential policy]] and helped develop the agenda for the [[G-20]] during Korea's presidency, which culminated in the [[2010 G-20 Seoul summit]] on November 11–12, 2010.<ref name=":0" />
In September 2013 the [[Basel]], Switzerland–based [[Bank for International Settlements]] (BIS) announced that Shin would begin a five-year term as its Economic Adviser and Head of Research starting in May 2014. In that role he would also serve as a member of the BIS Executive Committee.<ref>{{Cite news|url = http://www.centralbanknews.info/2013/09/koreas-shin-to-become-bis-adviser-borio.html|title = Korea's Shin to become BIS adviser, Borio to head MED|date = September 9, 2013|work = Central Bank News}}</ref><ref>{{Cite web|url = http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=873988|archive-url = https://web.archive.org/web/20090324061616/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=873988|url-status = dead|archive-date = March 24, 2009|title = Company Overview of Bank For International Settlements|website = Bloomberg Businessweek}}</ref>
In 2023 Shin was elected to the [[American Academy of Arts and Sciences]].<ref>{{Cite web |date=2023-04-19 |title=New Members Elected in 2023 |url=https://www.amacad.org/news/2023-member-announcement |access-date=2023-12-08 |website=American Academy of Arts & Sciences |language=en}}</ref>
== Research contribution ==
Global coordination games belong to a subfield of [[game theory]] that gained momentum in 1998 when he published an article with [[Stephen Morris (game theorist)|Stephen Morris]]. Shin and Morris considered a stylized [[currency crises]] [[Economic model|model]], in which traders observe the relevant fundamentals with small noise, and show that this leads to the selection of a unique equilibrium. This result is in stark contrast with models of [[complete information]], which feature multiple equilibria.
In 2011 he won the second ''[[Financial Times]]'' annual essay contest on [[banking regulation]] sponsored by the [[International Centre for Financial Regulation]]. He wrote about how the [[G-20 major economies]] could increase financial stability with [[macroprudential regulation]]s that "leans against the [[credit cycle]]" using examples from the UK, South Korea, and the United States. Specifically, he "advocated a global tax on non-core banking liabilities as the best way to deflate [[Economic bubbles|bubbles]]".<ref>{{Cite news|url = http://www.ft.com/cms/s/0/57dc5966-2d6b-11e0-8f53-00144feab49a.html|title = Princeton professor wins essay contest|last = Masters|first = Brooke|date = January 31, 2011|work = Financial Times}}</ref>
Shin argues that "financial firms systematically take more risk as [[Asset price inflation|asset prices rise]]", which means that the financial system's vulnerability "cannot be measured by price indicators like [[Credit spread (options)|credit spreads]] or [[Volatility (finance)|volatility]]. Instead, analysts should focus on quantities like the amount of assets on intermediary balance sheets and the liquidity and [[Maturity (finance)|maturity]] mismatches between those assets and the liabilities used to fund them".<ref>{{Cite news|url = https://www.economist.com/blogs/freeexchange/2013/01/putting-finance-macro-0|title = How should central banks think about the financial system?|last = M.C.K.|date = January 29, 2013|newspaper = The Economist}}</ref>
=== ''Risk and Liquidity'' ===
He is known for this 2010 book ''Risk and Liquidity'' which opens with a quote from an anonymous risk manager who says: "The value added of good [[risk management]] is that you can take more risks". He then says that [[financial risk]] is endogenous, due to the thinking expressed in this quote and makes an analogy with [[London]]'s [[Millennium Bridge, London|Millennium Bridge]] in which the instability was also endogenous. When the bridge lurched to the side, everyone adjusted their footing '''at exactly the same time,''' to avoid falling over, and this caused a synchronized oscillation.
=== Endogenous Risk ===
He is credited with coining the term [[endogenous risk]], with his co-author [[Jon Danielsson]] which as opposed to [[exogenous]] risk, captures shocks to the financial system stemming from how financial system participants interact with each other, giving rise to internal mechanisms, such as [[Feedback|feedback-loops]] and forced [[fire sale]]s.
=== The Taper Tantrum ===
[[Martin Wolf]] credits him with coming up with the explanation for the huge global overreaction (called the "taper tantrum") to United States Federal Reserve chair [[Ben Bernanke]]'s hint that he might taper [[quantitative easing]] in May 2013. Shin presented this theory at a conference on Asia at the [[Federal Reserve Bank of San Francisco]] in December 2013. Shin suggested that it was caused by the growth of demand for the private-sector bonds of [[emerging economies]], and the resulting excess global liquidity.<ref>[[Martin Wolf]], [http://www.ft.com/cms/s/0/9f96fa1e-5e8b-11e3-a44c-00144feabdc0.html "The emerging risks of ticking time bonds"], ''Financial Times'', December 10, 2013</ref>
==Sources==
* Stephen Morris and Hyun Song Shin (1998), "Unique Equilibrium in a Model of Self-Fulfilling Currency Attacks", ''[[American Economic Review]]'', 88 (3): 587–97.
==Citations==
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{{Neoclassical economists}}
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{{DEFAULTSORT:Shin, Hyun-Song}}
[[Category:21st-century South Korean economists]]
[[Category:New classical economists]]
[[Category:Academics of the London School of Economics]]
[[Category:Princeton University faculty]]
[[Category:Fellows of the Econometric Society]]
[[Category:1959 births]]
[[Category:Living people]]
[[Category:Alumni of Magdalen College, Oxford]]
[[Category:Alumni of Nuffield College, Oxford]]
[[Category:Fellows of Magdalen College, Oxford]]
[[Category:Academics of the University of Southampton]]
[[Category:Fellows of Nuffield College, Oxford]]
[[Category:Fellows of the British Academy]]
[[Category:Bank for International Settlements]]