Global economic growth this year will be slow and weak, as in the past few years due to Chinas rebalancing process, the US monetary policy normalization, and slowdowns in emerging market economies. Korea is not an exception. Korea has been recording minus growth in exports for 16 consecutive months. It is not easy for emerging market economies to gain monetary policy independence in the integrated financial market. Fiscal policy is also limited and has a much weaker effect compared to the past. Under such circumstances, we should make the best use of the set of policy instruments already in place. The exchange rate policy can prove effective as a limited set of policy measures for not only emerging market economies, but also Korea.