The International Transmission of Monetary Policy: Korea's Experience

14 Pages Posted: 7 Oct 2014

Date Written: August 2014


Monetary policy shifts in advanced economies are transmitted to emerging market economies (EMEs) through monetary policy responses by EME central banks and changes in cross-border capital flows. The ripple effects, however, depend upon the EMEs’ macroeconomic fundamentals and the amount and composition of the portfolio investment funds that have already flowed into them. Since the 2008 global financial crisis, Korea, like other EMEs, has been influenced, directly and indirectly, by the quantitative easing (QE) and quantitative easing tapering (QET) of major advanced economies. This paper discusses the international transmission effects occurring during the transformation to QE and QET, the related monetary policy responses and the challenges ahead, with a focus mainly on Korea’s experience.

Full publication: The Transmission of Unconventional Monetary Policy to the Emerging Markets

Keywords: Financial spillovers, capital flows, long-term interest rates, monetary policy challenges

JEL Classification: E52, F41

Suggested Citation

Kim, Jun, The International Transmission of Monetary Policy: Korea's Experience (August 2014). BIS Paper No. 78n, Available at SSRN:

Jun Kim (Contact Author)

The Bank of Korea

110, 3-Ga, Namdaemunno, Jung-Gu
Seoul 100-794, 100-794

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics