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| Content Provider | OECD iLibrary |
|---|---|
| Organization | OECD |
| Abstract | Economic growth slowed to less than a 4% annual rate in the second half of 2006, largely due to weak private consumption and a decline in housing construction. The economy is projected to pick up gradually, with growth of about 4ΒΌ per cent in 2007. Korea should pursue a flexible exchange rate policy by limiting intervention in foreign exchange markets. The liberalisation of controls on capital outflows should aim at improving long-run efficiency rather than moderating upward pressure on the won in the short run. The Bank of Korea should focus on achieving its new medium-term target for overall CPI inflation and avoid using monetary policy as a tool to stabilise real estate prices in some parts of the capital region, as further hikes in the short-term interest rate would have a negative impact on the increasingly indebted household and small and medium-sized enterprise sectors. |
| Page Count | 23 |
| Starting Page | 43 |
| Ending Page | 60 |
| Language | English |
| Publisher | OECD Publishing |
| Publisher Date | 2007-06-20 |
| Access Restriction | Open |
| Subject Keyword | Economics |
| Content Type | Text |
| Resource Type | Chapter |
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