콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Economic Administration

Print

Public debt and monetary policy in Korea

Related Document
Frame of Image
  • Public debt and monetary policy in Korea
  • Oh, Geum Wha
  • Bank for International Settlements


link
Title Public debt and monetary policy in Korea
Similar Titles
Material Type Articles
Author(English)

Oh, Geum Wha

Publisher

[Basel]:Bank for International Settlements

Date 1996
Series Title; No BIS Papers / no. 67
Pages 16
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Economy < Economic Administration
Holding BIS

Abstract

This note reviews Korea’s fiscal policy and public debt management, and discusses some of the constraints that bind the Bank of Korea in its conduct of monetary policy. Fiscal prudence and low public debt in Korea have allowed monetary policymakers to focus on inflation control without worrying about public debt dynamics. Such fiscal prudence is mainly attributable to the strong and long-standing commitment to a balanced budget. However, recently, fiscal policy has been managed in a more countercyclical manner within the framework of medium-term fiscal planning. During the recent global financial crisis, Korea implemented large-scale countercyclical fiscal policies to counteract the contractionary effect of the crisis. Meanwhile, the Korean government bond (TB) market has grown rapidly. Such a development can potentially be helpful for implementing countercyclical fiscal policy against crises, by acting as a low-cost funding source during crises. (The rest omitted)