The Korea Development Institute (KDI) issued a report Sunday characterizing the Bank of Korea’s (BOK) monetary policy over the past year as passive on price stabilization.

The state-run think tank conducted a simulation of policy interest rates based on empirical analysis results and found the recent policy interest rate level to be low even when compared to the monetary policy of the period between January 2001 and March 2008, which was considered to be passive on price stabilization.

In particular, the reaction factor for inflation over the past year was estimated at 0.3. Generally, a reaction factor of more than one for inflation is regarded as indicative of monetary policy that is proactive with regard to price stabilization, while a value of less than one is seen as indicating the reverse.

(The Hankyoreh)　

　

Plenary Session on Thurs. to Decide Fate of KORUS FTA

While Korea’s ruling and opposition parties still remain deadlocked over the long-pended Korea-US Free Trade Agreement, National Assembly’s trade committee has cancelled its general meeting that was set to be held on Monday. Attention is now shifting to whether the ruling Grand National Party will pass the bill unilaterally at a plenary session on Thursday.

GNP members have pledged to refrain from a physical clash with main opposition Democratic Party, but another round of political wrangling is expected as the DP remains firm on its stance.

Opposition members have urged the GNP to bring in an official document that guarantees immediate re-negotiation with the US on the Investor-State Dispute Provision before ratification can be further discussed.

National Assembly speaker Park Hee-tae, meanwhile, hinted direct tabling of the bill, saying that the ratification can no longer be delayed.

(Arirang News)