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Inflation Targeting in Korea: An Empirical Exploration
Author: Mr. Willy A Hoffmaister
Series:
IMF Working Papers
Volume/Issue:
Volume 1999: Issue 007
Language:
English
Publication Date:
01 Jan 1999
DOI:
https://doi.org/10.5089/9781451842395.001
ISBN:
9781451842395
ISSN:
1018-5941
Pages:
55
Keywords:
WP; target horizon; real interest rate; exchange rate; inflation outcome; IT country; price index; Inflation Targeting; Korea; IT framework; food price inflation shock; IT simulation; standard deviation; agents inflation expectation; IT experiment; transmission lag; target band; Inflation; Monetary base; Monetary policy frameworks
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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 target’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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund