Executive Summary

I. Introduction

II. Policy Challenges
1. The Current Account, Net Debt and Capital Flows
2. Volatility
3. Exports
4. The Optimal Stock of Gross Reserves
5. A Safety Valve, Concerted Intervention

III Inflation Targeting
1. Overview
2. Credibility and Inflation Targeting

IV Alternative Intermediate Regimes

V. The Currency Board Arrangement
1. Overview
2. Traditional Challenges
3. The Gains from Currency Unions and Boards
4. A Currency Board for Korea?

VI. Recent Experience in Korea and other Emerging Markets
1. Intervention and Policy Objectives

VII. Concluding Remarks

References

Appendix

본 논문의 목적은 한국에 적합한 통화정책 및 환율정책의 틀을 개발하는데 있다. 한국은 1997년말 외환위기 이후 변동환율제도를 채택하여 시행하고 있으나 동 환율제도와 통화정책이 과연 경제안정과 금융시장 안정을 유지하는데 최적인지는 불분명하다. (생략)