In order for our companies and furthermore, our economy to secure competitive advantages, reforms of the industrial structure and regulatory framework must be accelerated. Most of all, we need to strive to create an environment where innovation capacity in the private sector can lead to enhanced productivity and employment opportunities. Dear fellow members of the Bank of Korea!
Why does the BOU target core inflation, a measure of inflation derived from a basket which excludes food crops, fuel, energy and utilities, instead of headline inflation which includes all of the items in the consumer basket? Of course, the consumer cares more about headline inflation than core inflation.