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Relevant bibliographies by topics / Monetary policy – Korea

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Academic literature on the topic 'Monetary policy – Korea'

Author: Grafiati

Published: 4 June 2021

Last updated: 16 February 2022

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Journal articles on the topic "Monetary policy – Korea"

1

Kim, Soyoung. "Effects of Monetary Policy Shocks on the Exchange Rate in the Republic of Korea: Capital Flows in Stock and Bond Markets." Asian Development Review 31, no. 1 (2014): 121–35. http://dx.doi.org/10.1162/adev_a_00023.

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Several studies have suggested that the prediction of standard theory on the effects of monetary policy on the exchange rate might not be applicable to or in the case of the Republic of Korea because participation of foreign investors is weak in the bond market but strong in the stock market. The current study examines the effects of monetary policy shocks on the exchange rate in the Republic of Korea by using structural vector autoregression models with sign restrictions. To determine the channels by which monetary policy shocks affect the exchange rate, I investigate the effects on various components of capital flows. The main empirical findings are as follows. First, a contractionary monetary policy shock, which increases the interest rate, appreciates the Korean won significantly in the short run as predicted by most theories. Second, contractionary monetary policy shocks increase capital inflows into the bond market consistent with the prediction of the uncovered interest parity condition. This seems to be the main channel by which contractionary monetary shocks appreciate the won. Finally, foreign investors tend to withdraw money from the domestic stock market in response to a monetary tightening, resulting in a decrease in capital inflows.

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Park, Donghyun, and Junggun Oh. "Korea's Post-Crisis Monetary Policy Reforms." Review of Pacific Basin Financial Markets and Policies 08, no. 04 (2005): 707–31. http://dx.doi.org/10.1142/s0219091505000579.

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Korea's financial crisis of 1997–1998 was brought about by the unsustainable combination of large capital inflows and an inefficient financial system. The Bank of Korea contributed to the crisis primarily through its failures as the regulator of the financial system rather than as the conductor of monetary policy. Our paper explores the role of the two major monetary policy reforms Korea has implemented in response to the crisis — the establishment of a new financial regulator and the adoption of inflation targeting — in Korea's efforts to build a stronger and more efficient financial system, thereby preventing crises in the future.

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김태봉. "Effectiveness of Monetary Policy in Korea Due to Time Varying Monetary Policy Stance." KDI Journal of Economic Policy 36, no. 3 (2014): 1–23. http://dx.doi.org/10.23895/kdijep.2014.36.3.1.

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Clinton, Kevin, R. Craig, Douglas Laxton, and Hou Wang. "Strengthening the Monetary Policy Framework in Korea." IMF Working Papers 19, no. 103 (2019): 1. http://dx.doi.org/10.5089/9781498312226.001.

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Kim, Kyungsoo. "Monetary Policy and the Bank of Korea." Journal of Money & Finance 31, no. 3 (2017): 1–48. http://dx.doi.org/10.21023/jmf.31.3.1.

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Lindner, Deborah J. "Foreign Exchange Policy, Monetary Policy, and Capital Market Liberalization in Korea." International Finance Discussion Paper 1992, no. 435 (1992): 1–26. http://dx.doi.org/10.17016/ifdp.1992.435.

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Ongan, Serdar, and Ismet Gocer. "Money stock determination process and money multiplier: case of South Korea." Journal of Financial Economic Policy 13, no. 4 (2021): 479–90. http://dx.doi.org/10.1108/jfep-02-2020-0039.

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Purpose This study aims to re-examine the money stock determination process for South Korea under the assumption of the existence of potential asymmetric (non-linear) relations (a mechanism) between the money stock and the monetary base. Because, the true and detailed diagnosis of this mechanism is crucially important for the Bank of Korea’s (BOK)’ monetary policy, as this country has been adopting an inflation targeting policy (ITP) for a long-time. Design/methodology/approach This paper applies the non-linear autoregressive distributed lag model by Shin et al. (2014). This model separates the original series of the monetary base into their increases (+) and decreases (−). The increases (+) and decreases (−) done by the BOK correspond to expansionary and contractionary monetary policies, respectively, in this study. Findings The empirical findings are two-fold. First, the money stock determination process in Korea has a non-linear (asymmetric) structure. This means that increases (+) and decreases (−) in the monetary base have asymmetric (different) impacts on money stock. Second, the BOK’s only expansionary monetary policy exhibits exogenous nature money stock determination with an almost stable money multiplier. These findings may help the BOK to take preventive precautions in its monetary policy implementations. Originality/value This study with its methodology may help the BOK to take preventive measures in its ongoing ITP proactively.

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Lee, Sang H. "Application of Taylor's monetary policy rule to South Korea." Atlantic Economic Journal 32, no. 3 (2004): 260. http://dx.doi.org/10.1007/bf02299447.

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조성훈, 우희열, and 허현승. "A Test on the Efficiency of Monetary Policy in Korea." KDI Journal of Economic Policy 29, no. 2 (2007): 117–33. http://dx.doi.org/10.23895/kdijep.2007.29.2.117.

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김소영 and Kwanho Shin. "Globalization of Capital Markets and Monetary Policy Independence in Korea." KDI Journal of Economic Policy 32, no. 2 (2010): 1–26. http://dx.doi.org/10.23895/kdijep.2010.32.2.1.

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Dissertations / Theses on the topic "Monetary policy – Korea"

1

Lee, Byunglak. "Financial structure and monetary policy in Korea." Thesis, Kansas State University, 1986. http://hdl.handle.net/2097/9928.

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Jang, Hee Chang. "Essays on household debt, macroprudential policy and monetary policy in South Korea." Thesis, Durham University, 2017. http://etheses.dur.ac.uk/12343/.

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Household debt in South Korea is high and still rising. Household debt to GDP ratio had risen at the similar pace with that in the US until 2007 but it has still been rising whereas it has been falling since 2017 in the US. As a result, it is now higher in South Korea than in the US. There was a dramatic growth in household debt in the US preceding the recent Great Recession and high level of household debt was viewed to amplify the severity of economic recession in the US constraining consumer spending. In this context, high and continuously rising household debt could be a potential risk factor for the South Korean economy. Macroprudential policy, which indicates policy aims to reduce financial systemic risk pre-emptively, is a crucial measure to slow down the pace of household debt growth in South Korea. However, there is no established tool to analyse or evaluate its effects and relationship to monetary policy. The second chapter presents the trend and distribution of household debt in South Korea, and brief history of policy responses to continuously increasing household debt. The third chapter shows how macroprudential policy works by using a simple heterogeneous DSGE model with collateral constraint. The model is based on so-called borrower-saver model. Despite of its simplicity, the model can clearly explain how macroprudential policy affects household debt and related variables in South Korea. In addition, dynamics of this model imply increasing amortisation rate is superior measure to decreasing LTV ratio because it induces less volatility in economy. The collateral constraint in this thesis is designed to distinguish household debt (stock) and borrowing (flow). As a result, it is more realistic than the one mostly used in literature. This collateral constraint setting contributes to the better results especially when we analyse the phase of tightening household credit conditions. Furthermore, it enables us to see how amortization rate affects the South Korean economy. The fourth chapter extends the model mainly to see how credit tightening and monetary policy work differently and how they interact. Habit formation in non-durable good consumption, price rigidity in non-durable good producers, fixed cost in intermediate good production and monetary policy are added in the model. Not only the newly added elements themselves but also inflation make model's responses different from those in the previous chapter. Nominal and real rigidities make dynamics last longer and more realistic. Due to the structure of collateral constraint, a rise in inflation can reduce the level of real household debt whereas there is no inflation effect on real household debt with the common type of collateral constraint. This also influences responses to monetary policy shock. The results demonstrate credit tightening is better than monetary policy in slowing down the growth rate of household debt. Among all policy measures considered, decreasing amortization rate is the most effective and increasing LTV ratio is the second. These implies that ongoing policy efforts to slow down the growth rate of household debt in South Korea is on the right track. The fifth chapter shows welfare effects of macroprudential policy. The results illustrate it is impossible to get social welfare gains in a situation given in South Korea when discretionary macroprudential policy comes into effect. If government adopts countercyclical macroprudential rule, it is possible to improve social welfare but it requires welfare loss either of borrower or saver.

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Lim, Hosung. "Essays on monetary policy transmission : panel data evidence from Korea." Thesis, University of Leicester, 2016. http://hdl.handle.net/2381/37955.

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The thesis consists of four distinct essays examining different aspects of monetary transmission using firm and bank level data for Korea. The first essay examines the determinants of firms' capital structure using comprehensive Korean firm-level panel data. The empirical results show that small, less collateralised, riskier firms are more dependent on short-term bank finance. Particularly after the currency crisis period, banks have more concerns about firms' profitability and the level of debt in their lending practices, and firms with higher profits or lower leverage have easier access to short-term bank borrowing. When examining the impact of tight monetary policy on firms' external finance, firm size, profitability, and indebtedness have significant role in bank lending channel during the post-crisis period. The second essay examines firms' foreign currency exposure and real exchange rate balance sheet effects on firms' investments using Korean firm-Ievel data. The findings in this paper have helped uncover the elusive real exchange rate balance sheet effect in limited open economy literature. The third essay examines the impact of foreign banks on the monetary policy transmission mechanism in the Korean economy with a specific focus on the lending behavior of banks with different types of ownership. Using bank-level panel data of the banking system in Korea, we present consistent evidence on the buffering impact of the foreign banks, especially foreign bank branches including U.S. bank branches, on the effectiveness of the monetary policy transmission mechanism in Korea from the bank-lending channel perspective during the global financial crisis of2008-2009. Finally, the fourth essay empirically analyses availability of credit for small and medium firms (SMEs) based on bank-firm level data, with a particular focus on the credit policy of the central bank of Korea. Its findings can serve as a useful reference for implementing credit policy, which is being increasingly adopted by central banks since the global financial crisis.

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Yi, Paul. "Essays on uncertainty, asset prices and monetary policy : a case of Korea." Thesis, University of Bath, 2014. https://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.648935.

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In Korea, an inflation targeting (IT) regime was adopted in the aftermath of the Korean currency crisis of 1997–1998. At that time, the Bank of Korea (BOK) shifted the instrument of monetary policy from monetary aggregates to interest rates. Recently, central bank policymakers have confronted more uncertainties than ever before when deciding their policy interest rates. In this monetary policy environment, it is worth exploring whether the BOK has kept a conservative posture in moving the Korean call rate target, the equivalent of the US Federal Funds rate target since the implementation of an interest rate-oriented monetary policy. Together with this, the global financial crisis (GFC) of 2007–2009 provoked by the US sub-prime mortgage market recalls the following question: should central banks pre-emptively react to a sharp increase in asset prices? Historical episodes indicate that boom-bust cycles in asset prices, in particular, house prices, can be damaging to the economy. In Korea, house prices have been evolving under uncertainties, and in the process house-price bubbles have been formed. Therefore, in recent years, central bankers and academia in Korea have paid great attention to fluctuations in asset prices. In this context, the aims of this thesis are: (i) to set up theoretical and empirical models of monetary policy under uncertainty; (ii) to examine the effect of uncertainty on the operation of monetary policy since the adoption of interest rate-oriented policy; and (iii) to investigate whether gradual adjustment in policy rates can be explained by uncertainty in Korea. Another important aim is (iv) to examine whether house-price fluctuations be taken into account in formulating monetary policy. The main findings of this thesis are summarised as follows. Firstly, as in advanced countries, the four stylised facts regarding the policy interest rate path are found in Korea: infrequent changes in policy rates; successive changes in the same direction; asymmetric adjustments in terms of the size of interest-rate changes for continuation and reversal periods; and a long pause before reversals in policy rates. These patterns of policy rates (i.e., interest-rate smoothing) characterised the central bank‘s reaction to inflation and the output gap as being less aggressive than the optimising central bank behavior would predict (Chapter 3). Secondly, uncertainty may provide a rationale for a smoother path of the policy interest rate in Korea. In particular, since the introduction of the interest rate-oriented monetary policy, the actual call money rates have shown to be similar to the optimal rate path under parameter uncertainty. Gradual movements in the policy rates do not necessarily indicate that the central bank has an interest-rate smoothing incentive. Uncertainty about the dynamic structure of the economy, which is dubbed ‗parameter uncertainty‘, could account for a considerable portion of the observed gradual movements in policy interest rates (Chapter 4). Thirdly, it is found that the greater the output-gap uncertainty, the smaller the output-gap response coefficients in the optimal policy rules, and in a similar vein, the greater inflation uncertainty, the smaller the inflation response coefficients. The optimal policy rules derived by using data without errors showed the large size of the output-gap and inflation response coefficients. This finding confirms that data uncertainty can be one of sources explaining the reasons why monetary policymakers react less aggressively in setting their interest rate instrument (Chapter 5). Finally, we found that house prices conveyed some useful information on conditions such as possible financial instability and future inflation in Korea, and the house-price shock differed from other shocks to the macroeconomy in that it had persistent impacts on the economy, consequently provoking much larger economic volatility. Empirical simulations showed that the central bank could reduce its loss values in terms of economic volatility, resulting in promoting overall economic stability when it responds more directly to fluctuations in house prices. This finding provides the reason why the central bank should give more attention to house-price fluctuations when conducting monetary policy (Chapter 6).

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Shin, Hyun Joon. "Data-oriented study of the international transmission of monetary policy shocks : the case of Korea /." free to MU campus, to others for purchase, 2000. http://wwwlib.umi.com/cr/mo/fullcit?p9999314.

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Chung, Jae-Ho. "Capital liberalization, capital flows, and monetary policy responses on exchange market : the case of Korea /." free to MU campus, to others for purchase, 2001. http://wwwlib.umi.com/cr/mo/fullcit?p3025612.

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Hwang, Chung-Hoon. "Influences of exogenous shocks on three Asian small open economies : evidence using a structural VAR with block exogeneity /." free to MU campus, to others for purchase, 2001. http://wwwlib.umi.com/cr/mo/fullcit?p3025625.

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Ryou, Hyunjoo. "Exchane Rate Dynamics under Financial Market Frictions- Exchange rate regime, capital market openness and monetary policy -Electoral cycle of exchange rate in Korea : The Trilemma in Korea." Phd thesis, Université de Cergy Pontoise, 2012. http://tel.archives-ouvertes.fr/tel-00838836.

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-Exchange Rate Dynamics under Financial Market FrictionsThis paper extends Dornbusch's overshooting model by proposing "generalized interest parity condition", which assumes sluggish adjustment on the asset market. The exchange rate model under the generalized interest parity condition is able to reproduce the delayed overshooting of nominal exchange rates and the hump-shaped response to monetary shocks of both nominal and real exchange rates.-Electoral Cycle of Exchange Rate in KoreaThis paper empirically investigates the real exchange rate behavior around elections in Korea. We find that the real exchange rate depreciates more before the elections but there is no clear pattern found after the elections. Interestingly, this result is the opposite of the electoral cycle found in Latin American countries. To explain this results we should consider the difference between economic backgrounds of Korea and Latin American countries.-Exchange Rate Regime, Capital Market Openness and Monetary Policy; The Trilemma in KoreaThis paper tests the trilemma proposition by performing an empirical study of Korea. Korea has distinct periods of all combinations of exchange rate regime and capital market openness in trilemma: pegged exchange rate regime under capital controls, pegged exchange rate regime under free capital mobility, and floating exchange rate regime under free capital mobility. We check whether monetary autonomy exists in each of the three different combinations. We find that monetary autonomy existed over the periods with capital controls and the periods with floating exchange rate regime. For the periods with the pegged exchange rate regime and free capital mobility, monetary autonomy was limited. In addition, we identify that just before the financial crisis the government pursued autonomic monetary policy under pegged exchange rate regime and free capital mobility, thereby defying the trilemma.

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9

Yoon, Sung-Wook. "Foreign exchange exposure of Korean corporations before and after the Asian crisis /." free to MU campus, to others for purchase, 2003. http://wwwlib.umi.com/cr/mo/fullcit?p3091986.

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Pak, Byeong-Jae, and 朴炳哉. "Comparing Monetary Policy betweenTaiwan and Korea." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/53949987845981796726.

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碩士<br>中原大學<br>企業管理研究所<br>102<br>Abstract Taiwan and Korea are export-oriented countries, so the monetary policies for both country’s macroeconomics play a very important role. Short-term money market interest rates are important indicators of national monetary policy. This research conducted a study on the two methods. The first is the basic model Taylor (2001) proposed to study, the second aspect of the System to study. Taylor aspects of the model that we explore the relationship between interest rates, real exchange rate, GDP, CPI, unemployment rate, the inflation rate, U.S. interest rates. We further discuss two country central bank's monetary policy and exchange rate policy. The empirical results show that two country’s interest rate, GDP, CPI, unemployment rate, the inflation rate, U.S. interest rates are significantly affected. But the major difference is that of the real exchange rate. Therefore, in order to further explain this difference system, Taiwan's exchange rate system which is determined by the central bank, Korea exchange rate system instead is determined by the Ministry of Strategy and Finance, and hence Korea has larger exchange rate fluctuations.

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Books on the topic "Monetary policy – Korea"

1

Park, Jae-Hwan. Monetary policy in Korea. Bank of Korea, 2002.

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Ŭnhaeng, Han'guk. Han'guk ŭi t'onghwa chŏngch'aek: Monetary policy in Korea. Han'guk Ŭnhaeng, 2012.

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Money working Korea: Kŭmyung Han'guk pogosŏ. Maeil Kyŏngje Sinmunsa, 2007.

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Pyŏng-ch'an, An. Exchange rate and foreign exchange policies in Korea. Hannarae Publishing, 2013.

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5

Race to the swift: State and finance in Korean industrialization. Columbia University Press, 1991.

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Domaç, Ilker. The real impact of financial shocks: Evidence from Korea. World Bank, 1998.

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Kŭmni rŭl almyŏn kyŏngje ka poinda. Chiyŏngsa, 1993.

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International Bank for Reconstruction and Development. Korea: Managing the industrial transition : v.1,The conduct of industrial policy ; v.2,Selected topics and case studies. World Bank, 1987.

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9

Hoffmaister, Alexander W. Inflation targeting in Korea: An empirical exploration. International Monetary Fund, Research Department, 1999.

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Kim, Pyŏng-yŏn, and C. H. Lim. Financial sector reform in transition economies: Implications for North Korea. Seoul National University Press, 2009.

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Book chapters on the topic "Monetary policy – Korea"

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Moon, Woosik. "Inflation Targeting in Korea." In Financial and Monetary Policy Studies. Springer International Publishing, 2020. http://dx.doi.org/10.1007/978-3-030-50298-0_3.

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Shin, Jerome. "Korea-China Currency Swap-Financed Trade Settlement Facility." In Financial and Monetary Policy Studies. Springer International Publishing, 2014. http://dx.doi.org/10.1007/978-3-319-03062-3_8.

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Layman, Thomas A. "Monetary Policy and Financial Reform in Korea." In Monetary Policy in Pacific Basin Countries. Springer Netherlands, 1988. http://dx.doi.org/10.1007/978-94-009-2685-1_15.

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Frank, Rüdiger. "De-monetisation, Re-monetisation, and Parallel Currencies in North Korea." In Financial and Monetary Policy Studies. Springer International Publishing, 2017. http://dx.doi.org/10.1007/978-3-319-59846-8_4.

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Bueno, Xiana, and Eunsil Oh. "How Do Men Talk about Taking Parental Leave? Evidence from South Korea, Spain, and the U.S." In Engaged Fatherhood for Men, Families and Gender Equality. Springer International Publishing, 2021. http://dx.doi.org/10.1007/978-3-030-75645-1_9.

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AbstractThis study explores how men in South Korea, Spain, and the U.S. use parental leave and shows how distinct labor-market structures, divisions of unpaid and paid labor, and parental leave policies shape individuals’ intentions and decisions to utilize leave policies. Using in-depth interviews of 80 men, we show two important findings: One, in Spain and the U. S., the systematized monetary support strongly encourages fathers to use parental leave whereas in South Korea, a generous policy becomes of little use because work culture heavily discourages men from taking leave. Two, gender norms shape the desirability of using parental leave regardless of the availability of the policy. An emerging group of men in Spain and the U.S. actively reconstruct what an engaged father should do whereas Korean men took it for granted that fathers should not take leave, instead should work even harder to be a responsible father. In the end, this study shows how the monetary structure and schema of what an engaged father should do shape how men approach and use parental leave in three different contexts.

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Alacevich, Michele, and Pier Francesco Asso. "Shaping Monetary Constitutions for Developing Countries: Some Archival Evidence on the Bloomfield Missions to South Korea (1949–50)." In American Power and Policy. Palgrave Macmillan UK, 2009. http://dx.doi.org/10.1057/9780230246140_9.

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Harada, Yutaka. "Expansionary Monetary Policy Revised." In Japanese and Korean Politics. Palgrave Macmillan US, 2015. http://dx.doi.org/10.1057/9781137488312_3.

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Moon, Woosik. "A Coinless Society as a Bridge to a Cashless Society: A Korean Experiment." In Financial and Monetary Policy Studies. Springer International Publishing, 2017. http://dx.doi.org/10.1007/978-3-319-59846-8_7.

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"Monetary Policy." In Politics and Policy in Traditional Korea. BRILL, 1991. http://dx.doi.org/10.1163/9781684172993_009.

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"Sterilized intervention and monetary control: the case of Korea." In Exchange Rates, Capital Flows and Policy. Routledge, 2013. http://dx.doi.org/10.4324/9780203171950-21.

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Reports on the topic "Monetary policy – Korea"

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Chandrasekhar, C. P. The Long Search for Stability: Financial Cooperation to Address Global Risks in the East Asian Region. Institute for New Economic Thinking Working Paper Series, 2021. http://dx.doi.org/10.36687/inetwp153.

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Forced by the 1997 Southeast Asian crisis to recognize the external vulnerabilities that openness to volatile capital flows result in and upset over the post-crisis policy responses imposed by the IMF, countries in the sub-region saw the need for a regional financial safety net that can pre-empt or mitigate future crises. At the outset, the aim of the initiative, then led by Japan, was to create a facility or design a mechanism that was independent of the United States and the IMF, since the former was less concerned with vulnerabilities in Asia than it was in Latin America and that the latter’s recommendations proved damaging for countries in the region. But US opposition and inherited geopolitical tensions in the region blocked Japan’s initial proposal to establish an Asian Monetary Fund, a kind of regional IMF. As an alternative, the ASEAN+3 grouping (ASEAN members plus China, Japan and South Korea) opted for more flexible arrangements, at the core of which was a network of multilateral and bilateral central bank swap agreements. While central bank swap agreements have played a role in crisis management, the effort to make them the central instruments of a cooperatively established regional safety net, the Chiang Mai Initiative, failed. During the crises of 2008 and 2020 countries covered by the Initiative chose not to rely on the facility, preferring to turn to multilateral institutions such as the ADB, World Bank and IMF or enter into bilateral agreements within and outside the region for assistance. The fundamental problem was that because of an effort to appease the US and the IMF and the use of the IMF as a foil against the dominance of a regional power like Japan, the regional arrangement was not a real alternative to traditional sources of balance of payments support. In particular, access to significant financial assistance under the arrangement required a country to be supported first by an IMF program and be subject to the IMF’s conditions and surveillance. The failure of the multilateral effort meant that a specifically Asian safety net independent of the US and the IMF had to be one constructed by a regional power involving support for a network of bilateral agreements. Japan was the first regional power to seek to build such a network through it post-1997 Miyazawa Initiative. But its own complex relationship with the US meant that its intervention could not be sustained, more so because of the crisis that engulfed Japan in 1990. But the prospect of regional independence in crisis resolution has revived with the rise of China as a regional and global power. This time both economics and China’s independence from the US seem to improve prospects of successful regional cooperation to address financial vulnerability. A history of tensions between China and its neighbours and the fear of Chinese dominance may yet lead to one more failure. But, as of now, the Belt and Road Initiative, China’s support for a large number of bilateral swap arrangements and its participation in the Regional Comprehensive Economic Partnership seem to suggest that Asian countries may finally come into their own.

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