Paul Krugman recommends fiscal stimulus for S. Korea
- 5 years ago
폴 크루그먼, 한국 디플레 막기위한 과감한 재정투입 필요, 보호무역 속 글로벌 공급망에 남아야
Amid growing economic uncertainties, one Nobel Prize-winning economist has advised Korea to take bold actions to prevent possible deflation, and to remain in the global supply chain while avoiding being part of the U.S.-China trade battle.
Our Seo Eunkyung tells us more.
Paul Krugman said Monday that South Korea needs to use fiscal stimulus as a means of avoiding deflation and boosting its economy.
He was speaking in Seoul at the 2019 conference of the Knowledge Sharing Program.
He emphasized that when the global economy is weak, fiscal expansion can be effective.
He also said that South Korea, as Asia's fourth-largest economy, has plenty of room for expansionary fiscal spending.
Krugman also emphasized the importance of South Korea remaining in the global supply chain, expressing concerns over the rise trade protectionism, especially through the U.S.-China trade war.
Against this backdrop, Krugman said that while it might be difficult for South Korea to exercise direct influence on the U.S and China, Seoul can avoid being part of the trade dispute.
And Seoul should remain in the global supply chain by trading with third parties such as the European Union.
The conference where he was speaking, the Knowledge Sharing Program, aims to share Korea's expertise in economic development with other countries to address economic imbalances and improve sustainability.
Seo Eunkyung, Arirang News
Amid growing economic uncertainties, one Nobel Prize-winning economist has advised Korea to take bold actions to prevent possible deflation, and to remain in the global supply chain while avoiding being part of the U.S.-China trade battle.
Our Seo Eunkyung tells us more.
Paul Krugman said Monday that South Korea needs to use fiscal stimulus as a means of avoiding deflation and boosting its economy.
He was speaking in Seoul at the 2019 conference of the Knowledge Sharing Program.
He emphasized that when the global economy is weak, fiscal expansion can be effective.
He also said that South Korea, as Asia's fourth-largest economy, has plenty of room for expansionary fiscal spending.
Krugman also emphasized the importance of South Korea remaining in the global supply chain, expressing concerns over the rise trade protectionism, especially through the U.S.-China trade war.
Against this backdrop, Krugman said that while it might be difficult for South Korea to exercise direct influence on the U.S and China, Seoul can avoid being part of the trade dispute.
And Seoul should remain in the global supply chain by trading with third parties such as the European Union.
The conference where he was speaking, the Knowledge Sharing Program, aims to share Korea's expertise in economic development with other countries to address economic imbalances and improve sustainability.
Seo Eunkyung, Arirang News