Can Korea Protect Itself from International Capital Flows: Estimates of Monetary Sterilization
1
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
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.
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.
참고문헌 (18)
- Bahmani-oskooee, M., "The Marshall-Lerner Condition at Commodity Level: Evidence from Korean-U.S. Trade", Economics Bulletin, 35(2), pp.1136~1147 (2015)
- Brissmis, S., "A Unifying Framework for Analyzing Offsetting Capital Flows and Sterilization : Germany and the ERM", International Journal of Finance and Economics, 7, pp.63~78 (2002)
- Determinants of Korean Trade Flows and Their Geographical Destination, "Giorgianni, L.", IMF, ~, pp.IMF Working Paper No. 1997 (1997), 054
- Gylfason, T., "Does Exchange Rate Policy Matter?", European Economic Review, 30, pp.375~381 (1987)
- Hassan, M. K., "Sterilization and Monetary Control by the GCC Member Countries", World Economy, 36(12), pp.1566~1587 (2013)
- Kee, H. L., "Import Demand Elasticities and Trade Ddistortions", Review of Economics and Statistics, 90(4), pp.666~682 (2008)
- Monetary Policy of the Bank of Korea during the First Sixty Years, "Kim, K.", Economic Research Institute, Bank of Korea, ~, pp.Working Papers No. 2011-8 (2011)
- Koo, S. B., "The External Influences on Korea’s Monetary Policy: A Taylor Rule Study", Journal of APEC Studies, 16(1) (2024)
- McKinnon, R., "Synchronized Business Cycles in East Asia and Fluctuations in the Yen", Dollar Exchange Rate, 2003, pp.26, 1067~1088
- China: A Stabilizing or Deflationary Inflation in East Asia? The Problem of Conflicted Virtue, "McKinnon, R.", Hong Kong Institute for Monetary Research, ~, pp.Hong Kong Institute for Monetary Research Working Paper No. 23 (2003)
- McKinnon, R., "The East Asian Dollar Standard, Fear of Floating and Original Sin", Review of Development Economics, 8, pp.331~360 (2004)
- McKinnon, R., "The Return to Soft Dollar Pegging in East Asia : Mitigating Conflicted Virtue", International Finance, 7, pp.169~201 (2004)
- Ouyang, A. Y., "Reserve Accumulation and Monetary Sterilization in Singapore and Taiwan", Applied Economics, 43(16), pp.2015~2031 (2011)
- Ouyang, A. Y., "Managing the Monetary Consequences of Reserve Accumulation in Emerging Asia", Global Economic Review, 37(2), pp.171~199 (2008)
- Ouyang, A. Y., "China as a Reserve Sink : The Evidence from Offset and Sterilization Coefficients", Journal of International Money and Finance, 29(5), pp.951~972 (2010)
- Dilemma not Trilemma: The Global Financial Cycle and Monetary‐policy Independen, "Rey, H.", National Bureau of Economic Research, ~, pp.Working Paper No. 21162 (2015)
- Wang, Y., "International Capital Flows and the Independence of China’s Monetary Policy", Chinese Economy, 52, pp.300~317 (2019)
- Global Crisis and Korea’s International Financial Policies, "Willett, T.", Korea Economic Institute, ~, pp.Special Studies Series No.5 (2009)