콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Economic Conditions
Economy Economic Administration

Print

Monetary policy in Korea through the lens of Taylor rule in DSGE model

Related Document
Frame of Image
  • Monetary policy in Korea through the lens of Taylor rule in DSGE model
  • Kim, Tae Bong
  • Stonybrook University


link
Title Monetary policy in Korea through the lens of Taylor rule in DSGE model
Similar Titles
Material Type Reports
Author(English)

Kim, Tae Bong

Publisher

[Stonybrook]:Stonybrook University

Date 2013-02
Series Title; No 2013 Meeting Papers / 746
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic Conditions
Economy < Economic Administration
Holding Stonybrook University

Abstract

This paper shows assessments on the monetary policy of Korea based on an estimated model. During the sample period of the inflation targeting scheme, the monetary policy discretion, which is the monetary policy shock after the historical decomposition of the model, has been mostly inflationary while it was reducing the volatility of output growth and thus countercyclical. 3% target rate could have been achieved when the monetary policy shock’s standard deviation was approximately half of its posterior estimate. Various degree of monetary policy stance has been simulated with the sample period. An aggressive monetary policy towards inflation stabilization would have generally led to the average level of inflation rate closer to its target rate but at the cost of higher volatilities of the output growth.