This paper provides an overview of the developments in the Korean foreign exchange market and the Bank of Korea's foreign exchange interventions since the introduction of the floating exchange rate regime in Korea. It deals with institutional aspects such as the objectives, instruments employed,...

It has been shown that the nonfundamental uncertainty called sunspots matters in many areas of the economy. Noting the fact that nationwide capital movement and the speculative demand for foreign currencies are rapidly increasing, this paper conducts empirical tests on the sunspot exchange rate...