Fiscal policy in Korea: Before and after the financial crisis

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• 作者：Young Lee ; Changyong Rhee and Taeyoon Sung
• 关键词：Fiscal policy in the Korean financial crisis ; Consolidated budget deficit ; Contingent liabilities ; IMF stabilization program in Korea
• 刊名：International Tax and Public Finance
• 出版年：2006
• 出版时间：August, 2006
• 年：2006
• 卷：13
• 期：4
• 页码：509-531
• 全文大小：324 KB

文摘

This paper examines the role of fiscal policy in the Korean financial crisis and the subsequent recovery from it. We specifically address three questions: Was Korea’s fiscal policy prior to the crisis conservative, or were there large hidden contingent liabilities not captured in the official budget balance? What were the main characteristics of fiscal policy in stimulating and restructuring the economy under the IMF stabilization program in Korea? How effective were the financial guarantee and public investment programs as part of the counter-cyclical fiscal policy in the recovery process from the crisis? To address these questions, we re-estimate the consolidated budget deficits in Korea by incorporating the quasi-fiscal activities of public funds and public enterprises using their micro balance-sheet data from 1972 to 2003.