환율 경로를 고려한 통화정책의 사회후생 비교

This paper analyzed the effect of exchange rate changes on macroeconomy in the context of social welfare. When the same Korean product is settled in won in domestic markets and in international currency in overseas markets, the ineffectiveness of price misalignment between home and abroad arises. The short-term impact of exchange rate fluctuations on the relative prices of domestic and foreign products is small, making it difficult for overseas households to switch their expenditure quickly. This paper examined the fluctuation of key macroeconomic variables and the exchange rate, against domestic productivity, overseas productivity, and overseas interest rate shocks. The monetary policies of domestic inflation targeting, consumer inflation targeting, Taylor rule, and fixed exchange rate system were compared. Domestic inflation targeting was the most desirable policy for social welfare. A stable domestic price reduces the inefficiency among domestic companies. Although it depends partly on the shock, the GDP gap has also been reduced due to stabilizing domestic prices. Under the fixed exchange rate system, although there is no ineffectiveness due to price misalignment, there has been an inefficient price dispersion among domestic companies, and it is futile in stabilizing the economy as it intertwines domestic and overseas interest rates. This paper drew an implication that exchange rate fluctuations were effective in resolving imbalance.