Fiscal Policy Issues in Korea after the Current Crisis
This paper examines fiscal policy issues in the Republic of Korea (hereafter Korea) after the 2009 global financial crisis, including the timing of fiscal policy responses, the effectiveness of expansionary measures, and the long-term implications for government debt. In order to evaluate more accurately Koreaâ€™s fiscal response since late 2008, this paper conducts an empirical analysis using historical data from Korea and other countries and derives stylized patterns on counter-cyclicality of fiscal policy and its role in the recovery process. The analysis suggests that Koreaâ€™s fiscal stimulus in 2009, while having contributed greatly to the economyâ€™s fast recovery, was unusually large compared with typical fiscal responses during economic downturns. This paper also investigates whether the rapid increase in Koreaâ€™s fiscal debt burden is admissible in terms of long-term sustainability. [ADBI Working Paper 225]
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hong, Kiseok & Lee, Jong-Wha & Tang, Hsiao Chink, 2009.
"Crises in Asia: Historical Perspectives and Implications,"
ADB Economics Working Paper Series
152, Asian Development Bank.
- Hong, Kiseok & Lee, Jong-Wha & Tang, Hsiao Chink, 2010. "Crises in Asia: Historical perspectives and implications," Journal of Asian Economics, Elsevier, vol. 21(3), pages 265-279, June.
- Marco Terrones & M. Ayhan Kose & Stijn Claessens, 2008.
"What Happens During Recessions, Crunches and Busts?,"
IMF Working Papers
08/274, International Monetary Fund.
- Stijn Claessens & M. Ayhan Kose & Marco E. Terrones, 2009. "What happens during recessions, crunches and busts?," Economic Policy, CEPR;CES;MSH, vol. 24, pages 653-700, October.
- Claessens, Stijn & Kose, Ayhan & Terrones, Marco E, 2008. "What Happens During Recessions, Crunches and Busts?," CEPR Discussion Papers 7085, C.E.P.R. Discussion Papers.
- Arthur F. Burns & Wesley C. Mitchell, 1946. "Measuring Business Cycles," NBER Books, National Bureau of Economic Research, Inc, number burn46-1, December.
- Mark W. Watson, 1992.
"Business cycle durations and postwar stabilization of the U.S. economy,"
Working Paper Series, Macroeconomic Issues
92-6, Federal Reserve Bank of Chicago.
- Watson, Mark W, 1994. "Business-Cycle Durations and Postwar Stabilization of the U.S. Economy," American Economic Review, American Economic Association, vol. 84(1), pages 24-46, March.
- Mark W. Watson, 1992. "Business Cycle Durations and Postwar Stabilization of the U.S. Economy," NBER Working Papers 4005, National Bureau of Economic Research, Inc.
- Harding, Don & Pagan, Adrian, 2002.
"Dissecting the cycle: a methodological investigation,"
Journal of Monetary Economics,
Elsevier, vol. 49(2), pages 365-381, March.
- Don Harding & Adrian Pagan, 2000. "Disecting the Cycle: A Methodological Investigation," Econometric Society World Congress 2000 Contributed Papers 1164, Econometric Society.
- Gerhard Bry & Charlotte Boschan, 1971. "Foreword to "Cyclical Analysis of Time Series: Selected Procedures and Computer Programs"," NBER Chapters, in: Cyclical Analysis of Time Series: Selected Procedures and Computer Programs, pages -1 National Bureau of Economic Research, Inc.
- Young Lee & Changyong Rhee & Taeyoon Sung, 2006. "Fiscal policy in Korea: Before and after the financial crisis," International Tax and Public Finance, Springer, vol. 13(4), pages 509-531, August.
- Gerhard Bry & Charlotte Boschan, 1971. "Cyclical Analysis of Time Series: Selected Procedures and Computer Programs," NBER Books, National Bureau of Economic Research, Inc, number bry_71-1, December.
- Robert J. Barro & Charles J. Redlick, 2011.
"Macroeconomic Effects From Government Purchases and Taxes,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(1), pages 51-102.
- Robert J. Barro & Charles J. Redlick, 2009. "Macroeconomic Effects from Government Purchases and Taxes," NBER Working Papers 15369, National Bureau of Economic Research, Inc.
- Hong, Kiseok & Tang, Hsiao Chink, 2010. "Crises in Asia: Recovery and Policy Responses," Working Papers on Regional Economic Integration 48, Asian Development Bank.
When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:2982. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash)
If references are entirely missing, you can add them using this form.