The subject today is productivity in the financial sector, and as a central banker, I o not need to remind you that this sector is going through what are sometimes called “interesting times”. During the recent financial turmoil, central banks responded to short-term tensions and contributed to stabilising conditions for borrowers and lenders.
Over the past decade, many emerging market economies, including Korea, have reoriented monetary policy toward domestic price stability and away from a focus on stabilizing exchange rates. The Bank of Korea, indeed, adopted a formal inflation targeting regime in 1998.