Liberalization of Capital Flows in Korea: Big-Bang or Gradualism? / Dongchul Cho, Youngsun Koh.

Format:

Book

Author/Creator:

Cho, Dongchul.

Contributor:

National Bureau of Economic Research.

Koh, Youngsun.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5824.

NBER working paper series no. w5824

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Liberalization of Capital Flows in Korea

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1996.

Summary:

Capital market liberalization has become an irreversible trend in Korea since 1992. With the current level of high interest rate in Korea, however, drastic full-scale liberalization would certainly attract a large amount of capital inflows and appreciate the Korean won. This would affect the price competitiveness of Korean products in international markets, which could bring about significant macro-instability in an economy like Korea which relies heavily upon external transactions. Through simulations using a macro-model based on the neoclassical long-run convergence and the Keynesian short-run dynamics, this paper attempts to provide some quantitative assessments of several alternative policy choices including the speed of liberalization.

Notes:

Print version record

November 1996.