By Sung-Hee Jwa
The reader will locate the following analyses of quite a lot of prior and present coverage stories and reform efforts in Korea. The coverage classes drawn are designed to help Korea's transformation from the government-led improvement version to a contemporary market-orientated financial system. the most guiding principle of this publication is that Korea's fiscal destiny relies fullyyt upon the profitable integration of market-orientated structures and as such, coverage suggestions are duly provided.
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Additional info for A New Paradigm for Korea’s Economic Development: From Government Control to Market Economy
Before moving on to the role of government in Chapter 2, we would like to state clearly that this volume will not deal comprehensively with every issue relating to the economic sector in Korea. Our aim is not to provide a source book with an overview every aspect of the Korean economy. Such a task, apart from being a truly gargantuan endeavor, would be rather pointless considering the abundance of material already in existence that focuses on all major areas of the Korean economy. Rather, we seek to focus on a number of important issues concerning the reforms of economic sectors in Korea.
As a result, the Keynesian counter-cyclical macroeconomic policy function of the government became a new sub-topic within the debate, overriding the mostly microeconomic issue of resource allocation in the socialist economic calculation debate. The Keynesian economists advocated government intervention to remedy the market failures in the macroeconomic level, particularly the unemployment phenomenon. 2 Interestingly, the new argument for government intervention in the macroeconomic level was also strengthened by the development of macroeconomic modeling, which was partly spurred by the socialist planning theory that developed in response to the earlier debate on the possibility of socialist economic calculation.
For the purposes of our analysis, we suggest that a governmentled economic management regime is an economic policy regime in which the government determines major endogenous economic variables within the realm of private economic agents by imposing its will on the market as an outsider. Under such a regime, the government predetermines the outcome that would otherwise be determined endogenously through market competition processes. A government-led economic management such as that deﬁned above exhibits the following characteristics.