IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v49y2013i3p84-102.html
   My bibliography  Save this article

Central Bank's Retained Profits and Discount Windows: A Bureaucratic Organization's Discretion-Seeking Hypothesis

Author

Listed:
  • Iljoong Kim
  • Inbae Kim

Abstract

A recent study using data on seventy-one countries revealed that the central bank's retained profits serve as financial leverage for its discretion to choose the discount window, which tends to confer more benefits to bureaucrats than other monetary instruments. As an extension, we investigate the case of Korea. The Bank of Korea introduced the Profits-Retaining Clause (PRC) in 1962, elucidating two purposes: to reduce the monetary base and to secure credibility. Upon showing that these claims are not quite convincing, we confirm that the PRC probably served bureaucratic interests. In particular, this paper, using time-series data, supports the aforementioned cross-country study.

Suggested Citation

  • Iljoong Kim & Inbae Kim, 2013. "Central Bank's Retained Profits and Discount Windows: A Bureaucratic Organization's Discretion-Seeking Hypothesis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(3), pages 84-102, May.
    • Handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:84-102
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=318304658367272H
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:84-102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.