[2020 National Assembly Audit] Ruling and Opposition Parties Call for 'Role of the Bank of Korea'... Lee Ju-yeol "Fiscal and Monetary Policies Must Complement Each Other"

October 16 National Assembly Planning and Finance Committee Audit of the Bank of Korea

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Lee Ju-yeol, Governor of the Bank of Korea, stated that fiscal and monetary policies must complement each other during the COVID-19 situation.

Governor Lee appeared at the National Assembly's Planning and Finance Committee hearing on the 16th, responding to Hong Ik-pyo, a member of the Democratic Party of Korea, who pointed out that "during the COVID-19 situation, we cannot rely on only one of fiscal or monetary policy." Lee replied, "I agree that in the current situation, fiscal and monetary policies should be implemented complementarily."

He added, "The members of the Monetary Policy Committee are also considering this and share the same view," and said, "We will carefully operate monetary policy."

Regarding the failure to achieve the inflation target rate, Governor Lee said, "I agree that the gap between the inflation target and the actual inflation is too large."

Yoon Hee-sook, a member of the People Power Party, called for an active role from the Bank of Korea. When Yoon pointed out that "there is no research on the impact of monetary policy on inflation," Governor Lee responded, "We are having in-depth internal discussions." In response, Yoon criticized, "Research must be made public; how can it be done if it stays only inside?"

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