콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Macroeconomics

Print

Favorable external conditions and the Korean economy in 1986

Related Document
Frame of Image


Full Text
Title Favorable external conditions and the Korean economy in 1986
Similar Titles
Material Type Reports
Author(English)

Ro, Sung Tae

Publisher

[Seoul]:Korea Development Institute

Date 1978-08
Pages 48
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Macroeconomics
Holding Korea Development Institute

Abstract

Our estimation results demonstrate that Korea owed, to a great extent, its unusually good economic performance in 1986 the favorable changes in the world economic environment. The results should be used with caution, however, since they are based on simple equations, bold assumptions, and working
hypotheses. At present, the author and his colleagues at the Korea Development Institute are revising semiannual and
quarterly models to measure the impacts in a more analytical
and systematic way. Although these efforts will produce some
improvement, we believe that the coming estimation results will be similar to the ones reported in this paper. One policy implication we can draw form the estimation result is that economic policy makers should be well prepared for opposite changes in external conditions, which the economy is too sensitive. Oil prices and international interest
rates rose during the first five months of 1987. Under the
pressure of the United States, the speed of the won appreciation has been accelerated: almost 20% at an annual rate in the month
of May. Macroeconomic policies in the future should be directed
toward mitigating the adverse effects of external changes and
sustaining economic growth and moderate current-account
surpluses.