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Unpublished Paper
Unconventional Monetary Policy, Spillovers, and Liftoff: Implications for Northeast Asia
East-West Center Working Papers Innovation and Economic Growth Series (2015)
  • Marcus Noland
Abstract
Unconventional monetary policy (UMP) has had predictable effects. How exit plays out is scenario-dependent. Quantitative easing has had the predictable effect of encouraging currency depreciation and some partner countries may have attempted to offset these exchange rate effects.  Korea presents a particularly interesting case: it is relatively small and relatively open and integrated in both trade, and financial, terms with the United States and Japan, two practitioners of UMP. Authorities have acted to limit the won’s appreciation against the currency of China, not the US or Japan. Nevertheless Korea’s policy has is a source of tension with the US. Under legislation currently under consideration, the currency manipulation issue could potentially interfere with Korean efforts to attract direct investment from the US and create an obstacle to Korea joining the Trans-Pacific Partnership.
Keywords
  • unconventional monetary policy,
  • quantitative easing,
  • spillovers,
  • currency manipulation,
  • Korea
Publication Date
November, 2015
Citation Information
Marcus Noland. "Unconventional Monetary Policy, Spillovers, and Liftoff: Implications for Northeast Asia" East-West Center Working Papers Innovation and Economic Growth Series (2015)
Available at: http://works.bepress.com/marcus_noland/40/