Inflation Targeting in Korea : An Empirical Exploration

Author/Editor:

Alexander W. Hoffmaister

Publication Date:

January 1, 1999

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 99/7

Subject:

English

Publication Date:

January 1, 1999

ISBN/ISSN:

9781451842395/1018-5941

Stock No:

WPIEA0071999

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

55

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