Inflation Targeting in Korea

Woosik Moon ()
Additional contact information
Woosik Moon: Graduate School of International Studies, Seoul National University

Chapter Chapter 3 in Monetary Policy Implementation in East Asia, 2020, pp 31-42 from Springer

Abstract: Abstract The implementation of inflation targetingInflation Targeting (IT) in Korea highlights the importance of distinguishing between its symmetricSymmetric/Symmetry and asymmetricAsymmetric/Asymmetry operations. When Korea suffered from high inflation, the Bank of KoreaBank of Korea (BoK) set the inflation target at 3%, instead of 2%. Given its underlying intention to lower the inflation rateInflation rate to below 3%, rather than to maintain it centred at around 3%, its operation of inflation targeting was not necessarily a failure even when the inflation rate fell below 2%. In contrast, it would be a complete failure if the inflation rate rose above 4%. Clearly, this asymmetry cannot be applied to the operation of many advanced economies which, by adopting a target set at 2%, have endeavoured to insure that inflation is neither running persistently above nor below this target.

Date: 2020
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:fimchp:978-3-030-50298-0_3

Ordering information: This item can be ordered from
http://www.springer.com/9783030502980

DOI: 10.1007/978-3-030-50298-0_3

Access Statistics for this chapter

More chapters in Financial and Monetary Policy Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().