• International Journal of Advanced Culture Technology
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• v.7 no.1
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• pp.84-88
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• 2019

This paper examines whether the exchange rate respond differently to monetary policy shocks in Korea using regression model. We find an asymmetric response of the monetary policy shocks to the monetary policy shocks in the context of Korea. Over the whole period sample, we do not find the effect of an actual interest rate on exchange rate. But we find that the estimated coefficient on the expected and unexpected change in the policy rate are negative and statistically significant. In the period of monetary policy easing, the estimated coefficient on the expected and unexpected change in the policy rate are negative but not statistically significant. In contrast, the period of monetary policy tightening, the estimated coefficient on the expected and unexpected change in the policy rate are negative and statistically significant.

• East Asian Economic Review
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• v.28 no.2
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• pp.221-244
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• 2024

This study examines how the independence of monetary policy changes in situations where the interest rate differential between domestic and foreign rates inverts, utilizing the trilemma indices. For analysis, this paper uses the trilemma indices developed by Kim et al. (2017) to analyze the relationship between the monetary policy independence index and the other two trilemma indices, namely the capital account openness index and the exchange rate stability index, across 45 countries from 2002 to 2018. The analysis reveals that the trilemma's validity is contingent. In particular, no statistically significant negative correlation was found between the monetary policy independence index and exchange rate stability index during periods of interest rate differential inversion. A positive correlation emerges between exchange rate stability and the independence of monetary policy, particularly when the inverted interest rate differential exceeds a certain threshold. This situation, where the exchange rate remains stable despite low domestic interest rates, implies that the central bank is effectively managing monetary policy to appropriately respond to economic conditions, which is reflected in the monetary policy independence index.

• East Asian Economic Review
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• v.18 no.3
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• pp.301-335
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• 2014

In this paper, we consider a small open economy under the New Keynesian model with unemployment of Gal$\acute{i}$ (2011a, b) to discuss the design of the monetary policy. Our findings can be summarized in three parts. First, even with the existence of unemployment, the optimal policy is to minimize variance of domestic price inflation, wage inflation, and the output gap when both domestic price and wage are sticky. Second, stabilizing unemployment rate is important in reducing the welfare loss incurred by both technology and labor supply shocks. Therefore, introducing the unemployment rate as an another argument into the Taylor-rule type interest rate rule will be welfare-enhancing. Lastly, controlling CPI inflation is the best option when the policy is not allowed to respond to unemployment rate. Once the unemployment rate is controlled, however, stabilizing power of CPI inflation-based Taylor rule is diminished.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.1
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• pp.153-166
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• 2022

The study estimates the Structured VAR and the Dynamic Stochastic General Equilibrium Model for the Vietnamese economy based on the new Keynesian model for small and open economies, with the output gap, inflation, policy interest rate, the Vietnamese exchange rate, and the inflation and interest rate in the United States. The paper aims to clarify the impulse response of the macro variables through their shocks. It offers to model the SVAR and DSGE processes, as well as describe why and how interest rate policy is important in the impulse response of macro variables like the output gap and inflation process. The study supports the central role of monetary policy by giving empirical evidence for the new Keynesian theory, according to which an interest rate shock causes the output gap to widen and inflation to decrease. Finally, the application of the DSGE model is becoming more and more popular in the State Bank of Viet Nam to improve its policy planning, analyzing, and forecasting policy towards sustainable and stable growth.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.103-113
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• 2019

The effectiveness of monetary policy critically depends upon how well the transmission mechanism functions, so that the desired impact on output and inflation is achieved. The purpose of this paper is to study the transmission mechanism of monetary policy by analyzing the impact on inflation and output during multiple indicator regime (1998-99 to 2014) in an emerging economy-India. The Inflation Targeting Regime is also briefly outlined alongwith the impact on output and inflation. Using quarterly data for the period 1997 to 2017, the paper uses weighted average call money market rate as a proxy for the policy rate and evaluates the strength of the interest rate channel. We use a conventional Structural vector auto regression (SVAR) methodology to evaluate the efficacy and show the impluse response functions. Our results find that changes in the policy rate impact output growth steeply with a lag of about two quarters and the impact on inflation is maximized after three quarters. The study concludes that the monetary policy in India has a significant impact on output and inflation in the short-to-medium-run. After the policy shock, the fall in the output growth rate is of greater magnitude than the fall in inflation.

• The Journal of Industrial Distribution & Business
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• v.9 no.6
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• pp.15-24
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• 2018

Purpose - The adjustment of one country's monetary policy can cause the macroeconomic change of other countries. Due to this, this paper attempts to analyze the impact of China's monetary policy on South Korea's exchange rate. Research design, data, and methodology - Based on the flexible-price monetary model, sets of annual time series from 1980 to 2017 are employed to perform an empirical estimation. The vector error correction model is also used to exploit the short-run relationship between both of them. Of course, the South Korea's real GDP, the China's real GDP, South Korea's interest rate, the South Korea's interest rate and the South Korea's monetary supply are treated as independent variables in this paper. Result - The long-run findings reveal that the China's money supply has a negative effect on South Korea's exchange rate. Respectively, the short-run findings depicts that the China's money supply has negative a effect on South Korea's exchange rate. Of course, other variables selected in this paper also have an effect on South Korea's exchange rate whatever positive or negative. Conclusions - As the empirical evidence shows, the China's monetary policy has a negative effect on South Korea's exchange rate whenever in the long run or in the short run.

• Journal of the Korean Society of Child Welfare
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• no.36
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• pp.65-99
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• 2011

The main purpose of this study is to analyze the relationship between child poverty rate and family policy expenditure of welfare states (focusing on OECD countries). We analyzed not only the total social & family policy expenditures but the components of the family policy expenditure. OECD SOCX and calculated data from the LIS & OECD data were utilized for child and family policy expenditures and the poverty rate. One-way correlation and cluster analysis were employed for the analysis. The analytic results are as follows: Southern European and Anglo-Saxon countries' child poverty rates were higher and Scandinavian countries' child poverty rates were lower than any other clusters. The countries with high child poverty rate had higher child poverty rate than the entire nation's poverty rate, but Scandinavian countries' child poverty rate was lower. There was a strong correlation between family policy expenditure and child poverty rate. Especially the service expenditure and leave benefit expenditure were highly correlated with child poverty rate. On the other hand, cash expenditure was not significantly correlated with child poverty rate. We can suggest the policy implications from these results. Based on the analytic results, policy implications that the government should increase the family policy budget, especially the budget for family services and leave benefit to decrease child poverty rate and should make effort to support the employment of parents through policies such as active labor market strategies can be suggested.

• East Asian mathematical journal
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• v.24 no.1
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• pp.45-55
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• 2008

We consider an M/G/1 queue with $P^M_{\lambda}$-service policy, which is a two-stage service policy. The server starts to serve with rate 1 if a job arrives to the sever in idle state. If the workload of the system upcrosses $\lambda$, then the service rate is changed to M and this rate continues until the system is empty. It costs to change the service rate to M and maintaining the rate. When the expectation of the stationary workload is supposed to be less than a given value, we derive the optimal value of M.

• Journal of Korean Institute of Industrial Engineers
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• v.21 no.4
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• pp.507-517
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• 1995

The failure rate of an item depends on operational environment. When an item has a chance failure period and a wearout failure period in sequel, the severity of operational environment causes the increase in the slop of wearout failure rate or the increase in the magnitude of chance failure rate. For such a change of operational environment, this paper concerns the change of optimal preventive replacement time. Two preventive replacement policies, age replacement policy and periodic replacement policy with minimal repair, are considered. Investigated properties are: (a) in age replacement policy, optimal preventive replacement time increases as the chance failure rate increases and optimal preventive replacement time decreases as the slope of wearout failure rate increases, and (b) in periodic replacement policy with minimal repair, optimal preventive replacement time increases as the slope of wearout failure rate increases; however, the change of chance failure rate does not alter the optimal preventive replacement time.

• Journal of Family Resource Management and Policy Review
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• v.17 no.4
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• pp.127-144
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• 2013

The low birth rate in Korea reflects the declining desire to have children in this country due to rising emphasis on personal lifestyle. Since this phenomenon has accelerated, boosting the birth rate has become one of the most important policy tasks in Korea. The purpose of this research was to perform a case study based on women's lived experience to understand how the childbirth encouragement policy promoted by the government in order to boost the birth rate has affected the perception of childbirth among women. The findings are as follows : First, the effect of the childbirth encouragement policy on women's perceptions has been fairly low. Second, the social environment for encouraging childbirth is inadequate. Third, the economic burdens associated with childbirth and child care are still significant. Finally, the impact of the childbirth encouragement policy on changes in the perceptions of childbirth has been minimal. Based on these findings, various motivations for changes in the perceptions of childbirth among women were identified, leading to the following conclusion: Establishing a long-term childbirth encouragement policy is an effective way to boost the childbirth rate.