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Korea's Post-Crisis Monetary Policy Reforms

Author

Listed:
  • Donghyun Park

    (Economics Division, School of Humanities and Social Sciences, Nanyang Technological University, Singapore 639798, Singapore)

  • Junggun Oh

    (Institute for Monetary and Economic Research, Bank of Korea, Seoul 100-794, Korea)

Abstract

Korea's financial crisis of 1997–1998 was brought about by the unsustainable combination of large capital inflows and an inefficient financial system. The Bank of Korea contributed to the crisis primarily through its failures as the regulator of the financial system rather than as the conductor of monetary policy. Our paper explores the role of the two major monetary policy reforms Korea has implemented in response to the crisis — the establishment of a new financial regulator and the adoption of inflation targeting — in Korea's efforts to build a stronger and more efficient financial system, thereby preventing crises in the future.

Suggested Citation

  • Donghyun Park & Junggun Oh, 2005. "Korea's Post-Crisis Monetary Policy Reforms," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 8(04), pages 707-731.
    • Handle: RePEc:wsi:rpbfmp:v:08:y:2005:i:04:n:s0219091505000579
    DOI: 10.1142/S0219091505000579
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    References listed on IDEAS

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    Cited by:

    1. Victor Kane & Altay Dikeç & Jin Yong Park, 2017. "Cross-National CSR Web Reporting: A Comparative Analysis of Multinational Corporations in the U.S. and South Korea," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-28, March.

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    More about this item

    Keywords

    Korea; financial regulation; monetary policy; inflation targeting; Asian crisis;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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