콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Trade

Print

Early Warning Systems in the Republic of Korea: Experiences, Lessons, and Future Steps

Related Document
Frame of Image
  • Early Warning Systems in the Republic of Korea: Experiences, Lessons, and Future Steps
  • Asian Development Bank (ADB)


link
Title Early Warning Systems in the Republic of Korea: Experiences, Lessons, and Future Steps
Similar Titles
Material Type Reports
Publisher

Asian Development Bank (ADB)

Date 2011
Series Title; No Regional Economic Integration Working Papers
Language English
File Type Link
Subject Economy < Trade

Abstract

This paper examines the cases of the Early Warning System (EWS) in the Republic of Korea, which was introduced in the wake of 1997/98 Asian financial crisis in a policy effort to prevent its recurrence. The EWS in the Republic of Korea was expanded into a national system in 2005 incorporating the financial, real estate, commodities, and labor sectors. This paper provides the descriptions of each EWS sector and documents several episodes of their policy contributions. The past experiences suggest that quantitative models tend to have difficulty predicting a crisis due to the changing nature of crises. Hence, it is desirable that quantitative models are supplemented by qualitative analysis reinforcing EWSs with various methodologies. To improve economic surveillance and message delivery to guide proper policy actions, the independence of surveillance unit should be maintained and the scope of monitoring should be expanded to incorporate regions and markets other than domestic ones given the growing influences of the external sector on the domestic economy through trade and financial linkages.