Sterilized interventions and capital controls

Prasad, Nalini

doi:10.1016/j.jimonfin.2018.07.004

Cited by 14 publications

(1 citation statement)

References 33 publications

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“…The Bank of Korea resorts to foreign exchange intervention policies in scenarios of significant exchange rate fluctuations or substantial deviations in the base money supply. By integrating Equations ( 26) and ( 27) and drawing insights from the exchange rate policy frameworks of Acosta et al [85], Kang et al [86], Bhaskar et al [87], Liu and Spiegel [88], and Prasad [89], a distinct exchange rate policy rule for the Bank of Korea is formulated. This rule is designed to provide a structured approach for addressing exchange rate and monetary supply challenges in the Korean economy.…”

Section: Bank Of Korea Sectormentioning

confidence: 99%

Navigating Uncharted Waters: The Transformation of the Bank of Korea’s Monetary Policy in Response to Global Economic Uncertainty

He,

Teng

2024

Mathematics

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The evolving global economic landscape necessitates adaptive monetary policies, especially for economies like South Korea that are deeply integrated with global markets. This research explores the strategic recalibrations of the Bank of Korea’s monetary policy amid fluctuations in global economic uncertainty. Utilizing a sophisticated microeconomic theoretical framework, this study employs Bayesian estimation techniques and impulse response analysis to dissect the dynamic effects of these global shocks on South Korea’s macroeconomic stability and policy direction. Our findings reveal that the Bank of Korea has adeptly navigated through turbulent economic conditions induced by external shocks through well-coordinated policy adaptations. These adaptations, which include both traditional and innovative monetary tools, have been crucial in stabilizing the financial environment and promoting economic growth. By detailing the tailored application of the Taylor rule within the Korean context and strategic foreign exchange interventions by the central bank, this study contributes significantly to the broader discourse on the efficacy of monetary policy in open economies and offers insights on integrating advanced analytical methods into economic policy analysis.

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