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Korea's integrated policy framework story - extending into the effective lower bound era

· Chang Yong Rhee, Governor of the Bank of Korea (South Korea)

Summary written by Dark Majestic in its own words · topics: public finances and debt, development and emerging economies

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· Chang Yong Rhee Wiki · Bank of Korea WikiKorea's integrated policy framework story - extending into the effective lower bound era

ContextText of the 2025 Michel Camdessus Central Banking Lecture by Chang Yong Rhee, Governor of the Bank of Korea, at the International Monetary Fund, Washington DC, 18 September 2025.

Why it mattersThe Bank of Korea governor shares how emerging economies can combine several tools in crises, including support for bond markets near the lower bound.

Problems raised
  1. Emerging economies have fragile fundamentals and foreign debt.
  2. Small bond markets can push rates up in crises.
  3. Policy may hit the effective lower bound.
Solutions proposed
  1. Use an integrated policy framework.
  2. Support bond market functioning in crises.
  3. Learn from Indonesia's successful crisis response.
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