North Korean Threats and Asset Markets. Again.

It has long been alleged that North Korea has the capacity to impose asymmetric damage on the financial markets of its neighbors through threats and provocations. When I examined this issue around ten years ago, I concluded that the impact of provocations on South Korean and Japanese markets was minor and transitory. In the wake of the fourth nuclear test, both Charlotte Fitzek and Victor Cha and and I re-examined this issue and again reached skeptical conclusions. Indeed, I have argued that due

Source: Peterson Institute (PIIE)