Strengthening the Monetary Policy Framework in Korea

Monetary Policy in A Changing Financial Environment – Searching for An Efficient Monetary Policy Framework in Korea

This paper reviews how the changing financial environment in Korea has affected the conduct of monetary policy and examines the extent to which the Bank of Korea now uses the short-term interest rate rather than money aggregates as an operating target. Empirical results from estimation of monetary reaction functions suggest that the Bank of Korea has been following an interest rate target recen...

Monetary Policy, Fiscal Policy, and Aggregate Economic Activity in Korea

An Analysis of the Negative Interest Rate Policy and its Effects on the Efficiency of Monetary Policy in the Framework of the Money in the Utility Function Model

Today, the unconventional policy of negative interest rate is discussed in many Western societies and developed countries, and the implementation of this policy in the financial and banking system has brought growth and prosperity in many economies involved in the crisis. In fact, by applying a negative interest rate, the bank will be able to direct credit allocation to productive and priority ...

A New Framework for Hegemonic Analysis of Monetary Policy: The Case of Iran

Monetary policy rule might be helpful to avoid the problem of time inconsistency provided there is a commitment to the rule. The commitment is the ability of a government to bind future policies. However, it doesn’t include intrinsic motivations. Therefore, hegemony, which includes both intrinsic and extrinsic motivations, better solves the problem of  time inconsistency. In this paper, we expl...

Re-examining Canada’s Monetary Policy Framework:

Central banks were forced to use extraordinary policy measures to combat the macroeconomic consequences of the 2008–09 financial crisis. The experience also raised fundamental questions about existing monetary policy frameworks, causing central banks to revisit issues that were long thought to be resolved. Some critical observers even suggested that inflation targeting and the pursuit of price ...