Economic Policies FINAL Project !
PROFILE
[ Government Type ]
South Korea has republic government. Republic is a form of government that enables people to have power. Republic government allows people to elect leaders who would run the government according to law. The goal of republic government is to prevent dictatorship as people get to participate in politics with suffrage(right to vote) and government will only be ruled through laws. Leaders could not manipulate government and make political changes with their personal goals. All the decisions must be approved by other leaders and citizens.
[ Monetary and Fiscal Policies ]
South Korea government focuses on two objectives when making fiscal policies: reducing regulation in order to spur investments and raising household income to encourage consumption and reduce privately held debt. In that sense, government relaxed restrictions on stock movements and mortgage loans. However, such fiscal policy brought a controversy. Supporters have argue that relaxing restrictions in financial sector will lead to job creation. On the other hand, opponents argue that encouraging higher borrowing of money from banks further increase household debt.
South Korea has central bank, which is the Bank of Korea. The Bank of Korea was initially holding on to the interest rate even though its inflation targets were not met. However, government's aggressive fiscal policy and political support for the bank led Bank of Korea Governor Lee Ju-yeol to finally declare decrease interest rate. On the other hand, major investors were expecting the cut and the monetary policy wasn't able to produce much change. In fact, the policy merely exacerbated the concern from the country.
South Korea has republic government. Republic is a form of government that enables people to have power. Republic government allows people to elect leaders who would run the government according to law. The goal of republic government is to prevent dictatorship as people get to participate in politics with suffrage(right to vote) and government will only be ruled through laws. Leaders could not manipulate government and make political changes with their personal goals. All the decisions must be approved by other leaders and citizens.
[ Monetary and Fiscal Policies ]
South Korea government focuses on two objectives when making fiscal policies: reducing regulation in order to spur investments and raising household income to encourage consumption and reduce privately held debt. In that sense, government relaxed restrictions on stock movements and mortgage loans. However, such fiscal policy brought a controversy. Supporters have argue that relaxing restrictions in financial sector will lead to job creation. On the other hand, opponents argue that encouraging higher borrowing of money from banks further increase household debt.
South Korea has central bank, which is the Bank of Korea. The Bank of Korea was initially holding on to the interest rate even though its inflation targets were not met. However, government's aggressive fiscal policy and political support for the bank led Bank of Korea Governor Lee Ju-yeol to finally declare decrease interest rate. On the other hand, major investors were expecting the cut and the monetary policy wasn't able to produce much change. In fact, the policy merely exacerbated the concern from the country.
[ Government Type ]
North Korea has communist state one-man dictatorship government. Dictatorship government is a form of government in which single person owns all political authority. The person establishes various systems to ensure his strong power in the dictatorship government. It is a type of authoritarianism government as politicians control nearly all aspects of people's lives. The goal of dictatorship government is to possess all power to oneself and implement dictatorship, running the government with personal decisions.
[ Monetary and Fiscal Policies ]
North Korea implemented fiscal policy that lifted minimum wage and wage increase rate. North Korea government revised 13 provisions in Kaesong Industrial Complex Management committee wage system so that North Korea workers can earn more money. Those revised labor regulations of KIC violates general agreement that undermines the stability and the credibility of KIC regulations. Furthermore, the policy weakened the stability and credibility of KIC regulation.
North Korea has central bank called "the Foreign Trade Bank of the DPRK." It urged the stop in usage of foreign currency and payments should be made in the form of non-cash checks. Therefore, foreign organizations have to obtain non-cash checks from Foreign Trade Bank to pay for all the activities in North Korea. The monetary policy made foreigner's lives to be much more cumbersome in North Korea. On the other hand, purchasing with North Korean currency makes North Korean sellers to be more convenient.
North Korea has communist state one-man dictatorship government. Dictatorship government is a form of government in which single person owns all political authority. The person establishes various systems to ensure his strong power in the dictatorship government. It is a type of authoritarianism government as politicians control nearly all aspects of people's lives. The goal of dictatorship government is to possess all power to oneself and implement dictatorship, running the government with personal decisions.
[ Monetary and Fiscal Policies ]
North Korea implemented fiscal policy that lifted minimum wage and wage increase rate. North Korea government revised 13 provisions in Kaesong Industrial Complex Management committee wage system so that North Korea workers can earn more money. Those revised labor regulations of KIC violates general agreement that undermines the stability and the credibility of KIC regulations. Furthermore, the policy weakened the stability and credibility of KIC regulation.
North Korea has central bank called "the Foreign Trade Bank of the DPRK." It urged the stop in usage of foreign currency and payments should be made in the form of non-cash checks. Therefore, foreign organizations have to obtain non-cash checks from Foreign Trade Bank to pay for all the activities in North Korea. The monetary policy made foreigner's lives to be much more cumbersome in North Korea. On the other hand, purchasing with North Korean currency makes North Korean sellers to be more convenient.
CITATIONS
http://en.wikipedia.org/wiki/Republic
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
https://www.cia.gov/library/publications/the-world-factbook/geos/ks.html
https://www.cia.gov/library/publications/the-world-factbook/geos/kn.html
http://en.wikipedia.org/wiki/Dictatorship
http://www.tradingeconomics.com/south-korea/gdp-growth-annual
http://www.indexmundi.com/north_korea/gdp_real_growth_rate.html
http://www.theglobaleconomy.com/North-Korea/Unemployment_rate/
http://thediplomat.com/2014/08/south-korea-lowers-interest-rates-increases-uncertainty/
http://www.nkeconwatch.com/category/fiscal-policy/
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
https://www.cia.gov/library/publications/the-world-factbook/geos/ks.html
https://www.cia.gov/library/publications/the-world-factbook/geos/kn.html
http://en.wikipedia.org/wiki/Dictatorship
http://www.tradingeconomics.com/south-korea/gdp-growth-annual
http://www.indexmundi.com/north_korea/gdp_real_growth_rate.html
http://www.theglobaleconomy.com/North-Korea/Unemployment_rate/
http://thediplomat.com/2014/08/south-korea-lowers-interest-rates-increases-uncertainty/
http://www.nkeconwatch.com/category/fiscal-policy/