Professor Jinil Kim to Join BOK Monetary Policy Committee: "Optimal Policy Mix Needed Between BOK and Government for Price and Economic Stability"

Successor to Shin Seonghwan

Four-Year Term on the Committee

Leading Domestic Macroeconomist

Extensive Global Experience as Senior Economist at the U.S. Fed

Jinil Kim, Professor of Economics at Korea University, who will be joining the Monetary Policy Committee at the Bank of Korea, cited the government's policy direction as a key variable for future monetary policy decisions amid the conflicting tasks of stabilizing prices and defending the economy.

Jinil Kim, nominee for the Monetary Policy Committee at the Bank of Korea.

On May 12, in a phone interview with The Asia Business Daily, Kim stated, "As a citizen, I am also acutely aware of concerns about rising domestic inflation following the Middle East war."

Regarding measures to respond to inflation and economic conditions, he said, "Isn't it true that other economic ministries, such as the Ministry of Economy and Finance and the Financial Services Commission, also deal extensively with prices and the economy? We need to consider how the policies of these agencies can best be combined to address inflation and economic issues." He added, "When I worked at the U.S. Federal Reserve (Fed), the first agenda item in every meeting was always either oil prices or fiscal policy. Any forecast needs a premise, and the biggest premises are expectations for oil prices or how fiscal policy will change."

On the impact of raising the base interest rate on inflation, Kim explained, "If interest rates are raised for a long time, inflation will rise in the long run, but for monetary policy focusing on the next one to two years, raising rates will reduce aggregate demand and thus have a greater effect in lowering prices. However, while inflation may be controlled, there is a risk that demand and the overall economy could further deteriorate. Therefore, the judgment must be that the risk of inflation outweighs the negative impact on the economy, even if it means some economic contraction."

Regarding the view that his experience at the Fed could make him more hawkish, he partly acknowledged this by saying, "Looking at my participation in Monetary Policy Committee polls so far, I think I have tended to be a bit above the median." However, he added, "The hawk-dove distinction makes sense when interest rates are set solely based on inflation and economic growth, but since 2008, financial stability has become important, in 2020 there was COVID-19, and now there’s war. Even looking at the confirmation hearing for Kevin Warsh, a candidate for U.S. Fed Chair, it seems clear that the usefulness of the hawk-dove distinction has greatly diminished."

Meanwhile, Kim is expected to officially begin his duties as a Monetary Policy Committee member as early as next week, following presidential appointment and other procedures. The Monetary Policy Committee meeting scheduled for May 28 is likely to be his debut appearance.

Born in 1967, Kim earned his bachelor's and master's degrees in economics from Seoul National University, and later received a Ph.D. in economics from Yale University in the United States.

Kim’s notable career includes practical experience on the global stage. He worked as an economist at the U.S. Fed from 1996 to 1998, then as a senior economist for seven years from 2003, gaining global insights. He also served as an adjunct professor at Georgetown University and as an assistant professor of economics at the University of Virginia, before joining Korea University as a professor of economics in 2010.

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