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우리나라의 자금순환모형 분석(Analysis on the money flow model of Korea)

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Title 우리나라의 자금순환모형 분석(Analysis on the money flow model of Korea)
Similar Titles
Material Type Reports
Author(Korean)

최범수

Publisher

[서울]:한국개발연구원

Date 1992
Series Title; No 정책연구시리즈 / 92-03
Pages 142
Subject Country South Korea(Asia and Pacific)
Language Korean
File Type Documents
Original Format pdf
Subject Economy < Macroeconomics
Holding KDI; KDI School

Abstract

The objective of this research is to establish a money flow model in Korea by taking into account of the conditions in the country.
The Flow of Funds (FOF or Money Flow Table) Account follows the flow of money through financial transactions within sectors of the national economy, which clearly show how savings, investment, and funding are aligned throughout the sectors.
The Flow of Funds Account demonstrates the roles of finance in income, savings, and expenditure. It allows comprehensive behavioral analysis by identifying how these economic activities affect the financial market. It is necessary to systematically theorize the FOF Account, which merely describes phenomena, as the account itself cannot offer meaningful knowledge regarding financial transactions.
As Korea undergoes rapid economic growth, the country’s financial structure is significantly changed in terms of scope and content. The high economic growth, monetary policies to improve the international balance of payments, and control of inflation led to the accumulation of financial assets. In addition, the national rate of savings and the preservation rate of the financial shortages of companies by the public sector increased substantially. Also, the introduction of a stock market reshaped asset management as well as business practices.
The behavioral equation based on these variables shows that the pertinent model can be slightly unstable in the case of short-term asset related circulation blocks, and needs to be improved regarding firms’ demands for non-bank deposits and other mechanisms. Despite these limits, the model demonstrates the economic changes of most of the variables, which indicates that the model has a potential to be advanced enough to describe changes in the finance structure in Korea, if some improvements are made on a constant basis. In addition, in order to evolve the model into a financial model, there should be efforts to align the real economy and the model, and to explicitly integrate policy variables, which will allow an analysis on the effectiveness of the policy.