The Impact of Domestic Monetary Policy and External Liquidity Shocks on Inequality in the Republic of Korea

• 발행기관: 세종대학교 경제통합연구소
• 저자명: Dong Jin Lee Joon-Ho Hahm Cyn-Young Park
• 간행물 정보: 『Journal of Economic Integration』제40권 제2호, 391~418쪽, 전체 28쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2025.05.31

국문 초록

This paper investigates the relationship between monetary policy and economic inequalities in the Republic of Korea. We consider both domestic and external monetary conditions in the analysis, allowing us to examine their varied impacts on income and wealth inequalities. Using data from the Household Income and Expenditure Survey and the Korean Labor and Income Panel Study, we find that an expansionary domestic monetary policy shock tends to reduce income inequality, while its effect on net wealth inequality is negligible. Conversely, an expansionary external liquidity shock, as indicated by unanticipated net capital inflows, tends to reduce income inequality but exacerbates net asset inequality. These findings suggest that both domestic monetary policy and external liquidity shocks affect economic inequalities, but through different channels.

목차

I. Introduction

II. Literature Review

III. Measuring Income and Wealth Inequalities in Korea

IV. Effects of Monetary Policy Shocks on Economic Inequalities

V. Policy Implication and Concluding Remarks

References

키워드

Income Inequality External Liquidity Shock Monetary Policy Sign Restricted VAR Wealth Inequality