Inflation Targeting in Korea

Inflation Targeting in Korea

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The revised Bank of Korea Act states that the primary goal of monetary policy is price stability, suggesting that monetary policy will move toward an inflation-targeting framework. The paper explores some of the practical aspects of this move, including such issues as the predictability of inflation, the definition of the price index, the inflation targeta€™s time horizon, and the width of the inflation-target bands. On balance, the empirical evidence suggests that Korea is likely to be successful in adopting an inflation-targeting framework over the medium term.Doan, Thomas A., a€œRATS, Usera#39;s Manual Version 4, a€ Chapter 8 (Estima, Evanston , I1., 1 992) Dueker Michael, and Gyuhan Kim, a€œA Monetary Policy Feedback Rule in a Fast-Growing Economy: Empirical Results for Korea, a€ mimeo, Federalanbsp;...

Title:Inflation Targeting in Korea
Author:Mr. Alexander W. Hoffmaister
Publisher:International Monetary Fund - 1999-01-01


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