We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
from Part III - How Is Monetary Policy Conducted in Korea?
Published online by Cambridge University Press: 17 February 2022
>Monetary policy is no longer the decisions to determine money, but just to decide on the short-term interest rates. Notwithstanding this, old principles consider these decisions as being equivalent, based upon the negative correlation between the bank reserve and the interest rate in the money market. Moreover, the BoK staff had a firm belief that the open market operation in the money market was the most desirable policy tool. In practice, however, the interest rate is neither determined by the interplay of demand and supply in the money market, nor is the open market operation an indispensable instrument, given the increasing role of the standby facility. This chapter examines the determination of the short-term interest rate under the 'corridor' system
To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.
