The Monetary Transmission Mechanism of a Small Open Economy with Sweeping Financial Reforms: The Case of Korea
Abstract
This study reveals how a Korean monetary transmission mechanism evolves in the tumultuous decade of the 1990s. We show that (i) contractionary monetary policy shocks have more explanatory power for the post-crisis periods than for the pre-crisis period; (ii) the effects on output from external shocks attributed to the oil price and the U.S. federal fund rates are mixed; (iii) there is little positive spillover effect from the U.S. to Korea through the trade channel; and (iv) there is a positive spillover effect from the international capital market channel. © 2009, Emerald Group Publishing Limited
Publication Title
Multinational Business Review
Recommended Citation
Seob Son, Y., Smith, W., & Soo Pyun, C. (2009). The Monetary Transmission Mechanism of a Small Open Economy with Sweeping Financial Reforms: The Case of Korea. Multinational Business Review, 17 (4), 1-20. https://doi.org/10.1108/1525383X200900025
