Evaluating Exchange Rate Management: An Application to Korea

Parsley, David C.; Popper, Helen

doi:10.2139/ssrn.1545650

Cited by 3 publications

(2 citation statements)

References 28 publications

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“…(2002) believe that the Bank of Korea still pursued exchange rate stability as a monetary goal, and classified the exchange rate regime of Korea as ‘intermediate’. Parsley and Popper (2009) also showed that the Bank of Korea pursues exchange rate stability as a monetary policy goal. However, the authors find that the central bank only targets the exchange rate in a manner consistent with hitting the IT, rather than directly targeting the value of the currency.…”

Section: Monetary Policy In the Four Asian Countriesmentioning

confidence: 99%

Is monetary policy non‐linear in Indonesia, Korea, Malaysia, and Thailand? A quantile regression analysis

Miles

Schreyer

2012

Asian-Pac Economic Lit

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There is a growing literature on the linearity or otherwise of monetary policy in industrialised countries. The investigations have revealed that the reactions of central banks to economic variables depend on the level of the variables, confirming the non-linearity of monetary policy in these countries. However, research into whether monetary policy is non-linear in emerging markets has been hampered by the lack of data, as a stable, 'modern' monetary regime has existed in emerging markets for only a relatively short time.Employing quantile regression, which is not as constrained as other regression methods by the shortness of time series, we investigate the non-linearity of monetary policy in four emerging Asian nations: Indonesia, Korea, Malaysia, and Thailand. Our results indicate that monetary policy in all four is non-linear. All display a 'hump-shaped' response to inflation across the quantiles-policy becomes tighter, going from lower to higher quantiles, reaches a peak, and then becomes looser. These results are similar to those found previously in Japan, and likely arise from a desire to limit exchange rate appreciation, as all four countries depend heavily on exports.

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Section: Monetary Policy In the Four Asian Countriesmentioning

confidence: 99%

Is monetary policy non‐linear in Indonesia, Korea, Malaysia, and Thailand? A quantile regression analysis

Miles

Schreyer

2012

Asian-Pac Economic Lit

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“…Korea has adopted inflation targeting but the exchange rate seems to still play an important role in its monetary policy. Both Eichengreen (2004) and Parsley and Popper (2009) have found that Korea's overnight call rate has responded to movement in the dollar-won exchange rate as well as to expected inflation and the output gap. find that a high proportion of Korea's intervention in the foreign exchange market has been sterilized.…”

Section: Sterilization and The Effects Of Exchange Rates On Domestic mentioning

confidence: 99%

Classifying international aspects of currency regimes

Willett

Chiu

Dechsakulthorn³

et al. 2011

Journal of Financial Economic Policy

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Purpose-There has been significant interest in the classification of exchange rate regimes in order to investigate a wide range of hypotheses. Studies of the effects of exchange rate regimes on crises and other aspects of economic performance can have important implications for policy choices. The paper provides a guide to the major new large data sets that classify exchange rate regimes and to critically analyze important methodological issues. Design/methodology/approach-The study surveys and critiques the literature and provides theoretical analysis of major issues involved in classifying exchange rate regimes. Findings-The study finds that all of the new data sets have problems but some have more problems than others and several of them are substantial improvements on what was previously available. It is also shown that the best ways to classify depend on the issue being addressed and that for detailed studies variants of measures using the concept of exchange market pressure are the most promising. Directions for future research are also discussed. Originality/value-The paper makes researchers aware of the new data sets that are available and discusses their strengths and weaknesses. It also presents original analysis of several of the major conceptual issues involved in classifying exchange rate regimes.

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Meta-Analysis of the New Keynesian Phillips Curve in Developed and Emerging Economies

Fidrmuc

Danišková

2019

Emerging Markets Finance and Trade

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Evaluating Exchange Rate Management: An Application to Korea

Cited by 3 publications

References 28 publications

Is monetary policy non‐linear in Indonesia, Korea, Malaysia, and Thailand? A quantile regression analysis

Is monetary policy non‐linear in Indonesia, Korea, Malaysia, and Thailand? A quantile regression analysis

Classifying international aspects of currency regimes

Meta-Analysis of the New Keynesian Phillips Curve in Developed and Emerging Economies

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