This study aims to introduce and analyze the ongoing economic and financial restructuring plans of the United States, Japan, and the United Kingdom, and to summarize the implications on the financial operation of Korea.
One of the most important features in each national economy is the public sector’s role. The government aims to stabilize the economy through financial policy, and at the same time, the government has significant influence on the distribution of resources and re-distribution of income by directly being involved in production and consumption activities as a producer, a consumer, and an employer. The US, a major economy, enacts reformations to limit government interference, considering it resultant in the corpulence in financial size and economic activities detriments to the economy, which include a high inflation rate, a low production level, and a high unemployment rate.
This study suggests four fundamental policies towards future economic restructuring and direction:
1) Reducing and re-adjusting budgets to control the expansion of government expenditure.
2) Reducing taxes to increase the will to work, save, or invest.
3) Relaxing government control and regulation.
4) Applying and stable monetary and financial policy.
The Japanese government, another advanced economy, reforms their administration and finance towards maintaining and improving creativity in their economy. In the past, Japan generated financial losses by issuing large bonds, and caused structural gaps between expenditure and tax income through financial policy. Consequently, Japan attempted to implement drastic financial policies for the economic recovery. The Japanese government developed methods to reduce its dependence on government bonds by reducing financial losses. The methods were twofold: increasing tax income by reforming the tax system, and, reducing expenditure through reforming administration.
By examining the economic restructuring plan of the US, and the financial restructuring, tax system, and administration reformation of Japan, and by analyzing the UK’s economic policy, Korea can determine better financial operation laws by comparing its own financial operation to economically advanced countries.
주요국의 경제 및 재정재건계획과 한국의 재정운용(Economy and financial restructuring plan of major countries and financial operation of Korea)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||KDI; KDI School|