財政膨脹指數 測定과 財政政策의 課題

Fiscal Impulse Indicators and the Role of Fiscal Policy in Korea

The purpose of the paper is two-fold. Firstly, it examines the relationship between fiscal policy and business fluctuation in Korea. It analyzed Fiscal Impulse indicator developed by IMP to evaluate whether fiscal policy had countercyclical effects on economic activities during the period of 1974-90. Results showed that the overall fiscal operation up to middle of 1970s showed mildly countercyclical and from the late 1970s to late 1980s, procyclical fiscal policy was generally employed Thus, according to the analysis of trend of changes in the fiscal impulse index, Korean economy, in general, lacked an intiative in performing a stabilizing role or in economic stabilization function from mid 1970s up to recent years. Secondly, it suggests the various fiscal policy options to strengthen the macroeconomic stability in the coming globalization period. These include the fiscal operation based on consolidated budget account, improvement of fiscal statistics, increase in flexibility of fiscal structure, effective management of public funds, improvement of medium-term fiscal plan, and strengtherning the relationship between central and local finance.