In 1964, Korea officially moved away from a fixed exchange rate to floating exchange rate system. Despite the changes in exchange rate system, the actual system was not much different from the fixed rate system based on the U.S. dollar with discontinuous devaluations. According to Bank of Korea’s Monthly Economic statistics, there were devaluations of the nominal exchange rate of 64% in 1964, 12% in 1971 and 1972, 19% in 1975, and 25% in 1979...
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dollar with discontinuous devaluations. According to Bank of Korea’s Monthly Economic statistics, there were devaluations of the nominal exchange rate of 64% in 1964, 12% in 1971 and 1972, 19% in 1975, and 25% in 1979. The discontinuous devaluations of Korean won to U.S. dollar had helped to remain the real exchange rate unchanged...
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