02085cas a2200241 a 4500 AALejournalIMF019328 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498314824 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Asia and Pacific Dept. Republic of Korea : Selected Issues. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (76 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper analyzes monetary policy and financial cycles; the evolution of macroprudential policies in Korea; the efficacy in prudential policies in taming financial excess and building financial resilience and; the interaction between monetary policy and macroprudential policies. Evidence for Korea suggests that financial stability will not necessarily materialize as a natural by-product of a so-called appropriate monetary policy stance. Although the effects of monetary and macroprudential instruments may overlap, they are not perfect substitutes. Macroprudential policies can also impact the banking system by affecting bank funding costs through the net interest margin. In certain circumstances borrower-based prudential measures and monetary policy can complement one another. Macroprudential policies can impact banks profitability. Policymakers should be mindful that macroprudential policy is not free of costs and that there may be trade-offs between the stability and the efficiency of financial systems. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2019/133 Full text available on IMF http://elibrary.imf.org/view/journals/002/2019/133/002.2019.issue-133-en.xml IMF e-Library