Inflation Targeting in Korea: An Empirical Exploration

Alexander Hoffmaister

No 1999/007, IMF Working Papers from International Monetary Fund

Abstract: The revised Bank of Korea Act states that the primary goal of monetary policy is price stability, suggesting that monetary policy will move toward an inflation-targeting framework. The paper explores some of the practical aspects of this move, including such issues as the predictability of inflation, the definition of the price index, the inflation target’s time horizon, and the width of the inflation-target bands. On balance, the empirical evidence suggests that Korea is likely to be successful in adopting an inflation-targeting framework over the medium term.

Keywords: WP; target horizon; real interest rate; exchange rate; inflation outcome; IT country; price index; Inflation Targeting; Korea; IT framework; food price inflation shock; IT simulation; standard deviation; agents inflation expectation; IT experiment; transmission lag; target band; Inflation; Monetary base; Monetary policy frameworks (search for similar items in EconPapers)
Pages: 55
Date: 1999-01-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=2880 (application/pdf)

Related works:
Journal Article: Inflation Targeting in Korea: An Empirical Exploration (2001)
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:imf:imfwpa:1999/007

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().