2. Conventional Wisdom And The Crisis
Why it is that Fiscal policy is back in fashion.
1. One argument suggests that as Monetary and credit policy reached its limit policymakers had no other choice but to rely on fiscal policy more heavily.
2. The other argument is that as the recession across countries was expected to last long, fiscal stimulus would have enough time to yield beneficial i
debt affected by this crisis, so this Greek issue was concerned about in this sense. The Greek financial crisis was controlled by Greek government and also European Union. However, the fundamental solution was not done. So, in our report, we will examine closely about the Greek financial crisis- the causes and background, fiscal and monetary policy about the crisis, and the current situations.
2. Policy Analysis with Partial Capital Mobility
• Expansionary fiscal policy, fixed exchange rates
IS curve shifts right, Y and R increase.
Higher R increases foreign capital inflow.
• Creates BP surplus and upward pressure on currency.
Central bank intervenes in the foreign exchange market.
• Buys excess foreign currency.
Incr
fiscal policy harmonisation.
Countries choose this kind of economic integration form if their economical structures are complementary. If they are competitive, they will choose customs union.
Unlike a customs union, members of a free trade area do not have the same policies with respect to non-members, meaning different quotas and customs. To avoid evasion (through re-exportatio
Roh Moo Hyun period’s government
Increase in welfare and tried to distribute wealth
Pursued the welfare government based on Keynesian policy
Aimed at rational reform govt, integrated-nation govt, openness govt, and hopeful government
3 main state affairs’ goal: realization of democracy, construction of balanced society, and construction of North East Asian society with peace and prosp