摘要：This paper analyzes the role of the exchange rate in Korean eco-
nomic °uctuations based on a structural vector autoregression
model. We employ sign restrictions to identify structural shocks
of the VAR model, and examine whether the exchange rate works
as a shock absorber or a source of shocks in Korea. We ¯nd that
nominal shocks play a major role in explaining the real exchange
rate °uctuations, especially after the currency crisis. This implies
that the exchange rate seems to be a source of destabilization
rather than a shock absorber in Korea.
