We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
CAN KOREA PROTECT ITSELF FROM INTERNATIONAL CAPITAL FLOWS: ESTIMATES OF MONETARY STERILIZATION.
- Authors
SEH-BEOM KOO
- Abstract
The study investigates the external influences on Korea’s monetary policy over the period from 1990 to 2020. The focus is on the effects of US interest rates, payments imbalances and exchange rate changes on Korean monetary policy. The estimation of the Taylor rule measures the effects on Korean interest rates and the estimation of sterilization/ offset coefficients measures the effects on the domestic money supply and monetary base. This study measures the sterilization/offset equations and compares the results with the ones from Koo (2004) which examines the Taylor rule study. The empirical tests of both studies reveal two key findings: (1) Korean monetary policy has been influenced by monetary developments in the US, but it still has had a good deal of independence. (2) The exchange rate plays a crucial role for the BOK in achieving independent monetary policy.
- Subjects
MONEY supply; MONETARY policy; TAYLOR'S rule; CAPITAL movements; INTEREST rates; FOREIGN exchange rates
- Publication
Journal of Economic Development, 2024, Vol 49, Issue 2, p139
- ISSN
0254-8372
- Publication type
Article