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A tale of two monetary policies: Korea and Japan

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  • Thomas F. Cargill

Abstract

In most countries' experience, the course of financial liberalization?much like the course of true love in Shakespeare?"never did run smooth." The process of reforming an economy from one where the government takes the lead in allocating financial and real resources to one where market forces determine economic outcomes can involve choices and consequences that are painful and costly. ; This Economic Letter focuses on recent developments in two major economies in Asia?South Korea and Japan?to highlight some of the differences in their progress and to suggest that the differences might be due in part to different monetary policy outcomes.

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  • Thomas F. Cargill, 2005. "A tale of two monetary policies: Korea and Japan," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue apr15.
    • Handle: RePEc:fip:fedfel:y:2005:i:apr15:n:2005-07
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    References listed on IDEAS

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    1. Cargill, Thomas F. & Parker, Elliott, 2002. "Asian finance and the role of bankruptcy: a model of the transition costs of financial liberalization," Journal of Asian Economics, Elsevier, vol. 13(3), pages 297-318.
    2. World Bank & International Monetary Fund, 2003. "Korea : Financial Sector Assessment," World Bank Publications - Reports 13880, The World Bank Group.
    3. Cargill, Thomas F. & Parker, Elliott, 2004. "Price deflation, money demand, and monetary policy discontinuity: a comparative view of Japan, China, and the United States," The North American Journal of Economics and Finance, Elsevier, vol. 15(1), pages 125-147, March.
    4. Hong-Bum Kim & Chung H. Lee, 2004. "Post-Crisis Financial Reform in Korea: A Critical Appraisal," Working Papers 200410, University of Hawaii at Manoa, Department of Economics.
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