In the wake of Lehman Brothers' collapse, foreign investors fled, exports plunged, the Korean won sank, and the economy contracted sharply. The central bank cut rates quickly and often in the months that followed, while the government introduced stimulus measures. Many economists predicted that South Korea would be the first Asian country to begin rolling back its accommodative monetary policy. Public debt crises in Europe further clouded Korea's economic outlook. Exports grew by 47.1% year on year in January, while industrial production expanded by 33.9% year on year in December.
Rate Decision Sparks Fears Of Political Meddling Thomas Clouse Global Finance; Mar 2010; 24, 3; Docstoc pg. 8 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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