Korea’s Exchange Rate Stability and Exchange Rate Policy

• 발행기관: 한국APEC학회
• 저자명: Seh-Beom Koo
• 간행물 정보: 『Journal of APEC Studies』Vol.17 No.1, 35~48쪽, 전체 14쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2025.06.30

국문 초록

The study investigates the causes of Korea’s exchange rate movements and Korea’s exchange rate policy over the period from 2000 to 2020. The focus of the study comprises the following two parts: (1) The effects of market fundamentals or destabilizing speculations on Korean exchange rate and (2) The degree of intervention to manage the exchange rate appreciation. The 2008 Global Financial Crisis (GFC) has been chosen as a structural break for the study. The analysis of the Bank of Korea monthly monetary policy reports reveals the factors that contribute to the movement of the exchange rate. The measurement of Combined Propensities to Intervene (CPI) shows the degree of intervention in response to won appreciation. The monetary policy reports and the empirical test of both Combined Propensities to Intervene reveal two key findings: (1) Market fundamentals mainly influenced the exchange rate movements before the GFC, while both market fundamentals and destabilizing speculations affected the exchange rate fluctuations after the GFC. (2) Active intervention of the exchange rate explains that Korea’s exchange rate regime. Finally, the empirical test, measuring exchange rate volatility, confirms the findings above.

목차

I. Introduction

II. Korea’s Exchnage Rate Regime

III. The Bank of Korea Monetary Policy Analysis: The Exchange Rate

IV. The Exchange Rate Policy & Combined Propensities to Intervene (CPI)

V. Empirical Test

VI. Conclusion

References

키워드

intervention Korean interest rate Korean exchange rate Korean monetary policy