Republic of Korea : Selected Issues

Publication Date: August 04, 2011
Electronic Access: Free Full text (PDF file size is 1,003KB).
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Summary: The recent global financial crisis has exposed the limitations of a conventional inflation targeting framework in insulating an economy from all shocks, and demonstrated that its rigid application may aggravate the effect of shocks on output and inflation. Possible refinements to the inflation targeting framework in Korea were investigated by taking into account developments in the financial sector. The findings indicate that incorporating financial stability considerations will ease business cycle fluctuations by mitigating the buildup of factors that lead to large fluctuations in output and inflation.
Series: Country Report No. 11/247
Subject(s): Economic models | Financial stability | Inflation targeting | Selected issues

Publication Date: August 04, 2011
ISBN/ISSN: 9781462328437/1934-7685 Format: Paper
Stock No: 1KOREA2011002 Pages: 20
US$18.00 (Academic Rate:
US$18.00 )
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