A Study on the Impact of China’s Monetary Policy on South Korea’s Exchange Rate

• 발행기관: 한국유통과학회
• 저자명: Yugang He
• 간행물 정보: 『산경연구논집(JIDB)』Volume.9 No.6, 15~24쪽, 전체 10쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2018.06.30

영문 초록

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.

목차

1. Introduction

2. Literature Review

3. Methodology

4. Empirical Analysis

5. Conclusion

키워드

China’s Monetary Policy South Korea’s Exchange Rate Flexible-Price Monetary Model