Domestic and External Monetary Policy Shocks and Economic Inequality in the Republic of Korea

Publication | April 2022
SHARE THIS PAGE

This paper examines the linkage between monetary policy and economic inequalities in the open economy of the Republic of Korea.

The coronavirus disease pandemic has raised renewed concerns about economic and social inequality. This paper constructs measures of income and wealth inequality in the Republic of Korea. Empirical results show that both domestic and external monetary policy shocks exert significant countercyclical effects on income inequality. However, for wealth inequality, the effects are very different. External policy shocks proxied by fluctuations in net capital flows seem to have significant effects on net wealth inequality.

Contents

  • Introduction
  • Literature Review
  • Measuring Income and Wealth Inequalities
  • Effects of Monetary Policy Shocks on Economic Inequalities
  • Conclusion

Additional Details

Authors
Type
Series
Subjects
  • Economics
  • Finance sector development
Countries
  • Korea, Republic of
Pages
  • 28
Dimensions
  • 8.5 x 11
SKU
  • WPS220121-2
ISSN
  • 2313-6537 (print)
  • 2313-6545 (electronic)

Subscribe to our monthly digest of latest ADB publications.

Follow ADB Publications on social media.