콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Economic Conditions

Print

Monetary stabilization policy during economic crisis : Case of Korea

Related Document
Frame of Image
  • Monetary stabilization policy during economic crisis
  • Chung, Chae Shick; Kim, Se Jik
  • The Korean Economic Association


link
Title Monetary stabilization policy during economic crisis
Similar Titles
Sub Title

Case of Korea

Material Type Reports
Author(English)

Chung, Chae Shick; Kim, Se Jik

Publisher

[Seoul]:The Korean Economic Association

Date 2004
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic Conditions
Holding The Korean Economic Association

Abstract

The paper evaluates the effectiveness of high interest rate policy in stabilizing the exchange rate during the Korean crisis, based on a nonlinear impulse response function approach. We find that high interest rates induce depreciation for a very short period, followed by a substantial appreciation for an extensive period In contrast, a low interest rate policy would appreciate the exchange rate only for a very short period but have little impact afterwards. Our empirical findings suggest that the IMF's interest rate policy in Korea contributed to the stabilization of the exchange rate.