S. Korea's fiscal deficit widens in Q1
Read more from: http://www.koreaherald.com/view.php?ud=20130531000259
Summary: South Korea's fiscal deficit is widened during the first quarter of this year, 2013. The central government's total income and expenditure has 14.8 trillion won deficit for the first third months of this year, widening 3.5 trillion won more. Recently, the national assembly approved a 17.3 trillion won extra budget to recover the depression.
Opinion: Growing deficit is caused by slow economic growth.Government should put more efforts to support economic growth by frontloading spending. If we have more deficit, it might lead to economic depression and we would not be able to recover again. I hope Korean economy would jump up!
Relation: Government taking action with the policies are called fiscal policy. Expansionary fiscal policy is to increase aggregate demand and stimulate the economy, and Contractionary fiscal policy is to reduce aggregate demand and slow the economy
<Fed's actions>
- Expansionary Monetary Policy (Tight Money)
: In recession, Fed increases money supply to increase aggregate demand
: Buy bonds on the open market, lower the reserve requirement, and reduce the discount rate
- Contactionary Monetary Policy (Easy Money)
: Fed decreases money supply to check aggregate demand and inflation
: Sell bonds on the open market, raise the reserve requirement, and increase the discount rate
Relation: Government taking action with the policies are called fiscal policy. Expansionary fiscal policy is to increase aggregate demand and stimulate the economy, and Contractionary fiscal policy is to reduce aggregate demand and slow the economy
<Fed's actions>
- Expansionary Monetary Policy (Tight Money)
: In recession, Fed increases money supply to increase aggregate demand
: Buy bonds on the open market, lower the reserve requirement, and reduce the discount rate
- Contactionary Monetary Policy (Easy Money)
: Fed decreases money supply to check aggregate demand and inflation
: Sell bonds on the open market, raise the reserve requirement, and increase the discount rate
I really do not like to hear that our country's economy has fiscal deficit. Since I do not know about economic policies a lot, I just wish the governors we chose will do good job and bring the flourish to our country.
답글삭제Park's Administration is suffering from significant national debt problem since the begging of her tenure. I'm doubtful whether she can actualize her promises with such economic condition.
답글삭제I guess it is natural for most governments to have a deficit. But I don't think it is a good thing that many governments, including South Korea's, government, has a deficit. It would be better for everyone if our government was out of deficit.
답글삭제