Economics Monetary Policy Questions
The role of the Central Bank of South Korea, also known as the Bank of Korea, in monetary policy in South Korea is to formulate and implement policies that aim to maintain price stability and support sustainable economic growth. The central bank is responsible for controlling the money supply, setting interest rates, and managing foreign exchange reserves. It conducts open market operations, such as buying or selling government bonds, to influence the liquidity in the financial system. Additionally, the central bank monitors and analyzes economic indicators to assess the overall health of the economy and make informed decisions regarding monetary policy adjustments.