Experiences with Monetary Integration and Lessons for Korean Unification

Author/Editor:

Goohoon Kwon

Publication Date:

May 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper discusses the timing of monetary integration and supporting economic policies during a rapid and largely uncontrolled process of Korean unification. The paper concludes that the transitory use of a separate currency in each region and supporting economic policies would help limit the initial costs of unification although the extent of the eventual cost reduction would depend critically on the success of ensuing economic reforms in the North during the transition. Maintaining the competitiveness of the northern economy would need to be a primary policy objective in the case of an early introduction of a common currency.

Series:

Working Paper No. 1997/065

Subject:

Economic integration Foreign exchange Labor Money National accounts

English

Publication Date:

May 1, 1997

ISBN/ISSN:

9781451962635/1018-5941

Stock No:

WPIEA0651997

Pages:

35

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