The Bank Of Korea And The European Central Bank Essay examples

1235 Words Mar 18th, 2016 null Page
Central banking exists in nearly every country and their purpose is to control and manage the monetary base and currency of their respective countries. Although their mission is the same, their structure may vary. The Bank of Korea in South Korea can be examined by looking at these similarities and differences.
The Bank of Korea (BOK) has goals and responsibilities that are similar to that of the Federal Reserve and the European Central Bank (ECB). The Bank of Korea was established in 1950 with the primary functions of maintaining price stability, establishing monetary policies and controlling money circulation. Similarly, the goals of the Fed and ECB are to control the country’s monetary policies in order to maximize the conditions of their economy in things such as employment, interest rates, and prices. The BOK is not a commercial bank, similar to the Fed. The Monetary Policy Board is at the head of this organization and is “composed of seven members representing various groups in the national economy” (“Monetary Policy Board”). The board consists of a Chairman or Governor, a senior deputy governor, and members who are nominated by representatives from the national economy. For example, the Minister of Strategy and Finance could nominate a member of the board. The President appoints the members on the board, who all hold three-year terms, with the exception of the Chairman who holds a four-year term position (“Monetary Policy Board”). In addition to the Monetary Policy…

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