콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Financial Policy

Print

Fiscal sustainability in the wake of the economic crisis in Korea

Related Document
Frame of Image
  • Fiscal sustainability in the wake of the economic crisis in Korea
  • Koo, Chung Mo
  • Elsevier


link
Title Fiscal sustainability in the wake of the economic crisis in Korea
Similar Titles
Material Type Articles
Author(English)

Koo, Chung Mo

Publisher

[Amsterdam, Netherlands]:Elsevier

Date 2002-07
Journal Title; Vol./Issue Journal of Asian Economics:vol. 13(no. 5)
Pages 11
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Financial Policy
Holding Kar-yiu Wong website

Abstract

The total amount of government debt was expected to rise sharply over the following several years in the wake of the Korean financial and economic crisis in 1997, raising concern about the sustainability of government deficits and fiscal consolidation. This paper provides an overview of Korea’s fiscal stance after the financial crisis and the policy implications for fiscal consolidation by assessing fiscal sustainability. Sustainability tests are carried out and show that Korean fiscal policy for the period 1970–1999 should be regarded as sustainable. Indicators of sustainability are also measured to that Korean fiscal policy for the period 1970–1996 is sustainable. However, both the primary and tax gap indicators with a sharp rise in the debt ratios are shown to be worsening since 1997 indicating increasingly possible unsustainable fiscal policies. It implies that the current primary deficit is too large and current taxes are too low to stabilize the debt ratio.