Korea's Monetary Policy Responses to the Global Financial Crisis

In Huh
Additional contact information
In Huh: Korea Institute for International Economic Policy

No 12-5, Working Papers from Korea Institute for International Economic Policy

Abstract: The Korean monetary authorities have implemented several policies on inflation, foreign exchanges and capital flows during and after the global financial crisis. The inflation target has been missed during the global financial crisis, as the Bank of Korea (BOK) was more lenient to supply shocks’ inflation in order not to impose the additional contractionary pressures on the economy during the global financial crisis. The Ministry of Strategy and Finance and the BOK tried to sustain the exchange market to be available for the public and to prevent the currency crisis. The monetary authorities have succeeded in preventing the currency crisis, but it is hard to say that the exchange market has been stabilized during the global financial crisis. The monetary authorities have imposed three macroprudential measures in order to prepare for the sudden stops. Those measures were not effective on reduction the volatility in the financial markets however they seem to have effect on the capital flows and lengthening the banks foreign debts.

Keywords: Monetary Policy; Inflation; Exchange Rate; Capital Flows (search for similar items in EconPapers)
JEL-codes: E50 F30 N20 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2012-12-31
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.2139/ssrn.2319720 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:kiepwp:2012_005

Access Statistics for this paper

More papers in Working Papers from Korea Institute for International Economic Policy [30147] 3rd Floor Building C Sejong National Research Complex 370 Sicheong-daero Sejong-si, Korea. Contact information at EDIRC.
Bibliographic data for series maintained by Juwon Seo ( this e-mail address is bad, please contact ).