Inflation targeting in Korea
The implementation of inflation targeting in Korea highlights the importance of distinguishing between its symmetric and asymmetric operations. When Korea suffered from high inflation, the Bank of Korea set the inflation target at 3%, instead of 2%. Given its underlying intention to lower the inflat...
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| Veröffentlicht in: | International Conference Entitled "Monetary Policy Execution in East Asia (2018 : Ludwigshafen) Monetary policy implementation in East Asia |
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| 1. Verfasser: | |
| Format: | UnknownFormat |
| Sprache: | eng |
| Veröffentlicht: |
2020
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Tag hinzufügen | Zusammenfassung: | The implementation of inflation targeting in Korea highlights the importance of distinguishing between its symmetric and asymmetric operations. When Korea suffered from high inflation, the Bank of Korea set the inflation target at 3%, instead of 2%. Given its underlying intention to lower the inflation rate to below 3%, rather than to maintain it centred at around 3%, its operation of inflation targeting was not necessarily a failure even when the inflation rate fell below 2%. In contrast, it would be a complete failure if the inflation rate rose above 4%. Clearly, this asymmetry cannot be applied to the operation of many advanced economies which, by adopting a target set at 2%, have endeavoured to insure that inflation is neither running persistently above nor below this target. |
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| ISBN: | 9783030502973 |