ABSTRACT
This chapter reviews past experiences in macroeconomic management and stabilization and seeks a new system of macroeconomic management in Korea, in light of new developments in the macroeconomic policy environment such as liberalization and globalization of the domestic economy. It also reviews Korea's experience of macroeconomic management and then looks at the legacies of the past regime of excessive government involvement in economic management. The chapter discusses possible changes forthcoming in the macroeconomic policy environment. It suggests that a new regime of macroeconomic management that would enable Korea to successfully adapt to newly emerging economic environments, both international and domestic. The chapter focuses on the roles the government should assume in order to promote sustainable economic development led by private sector initiatives. It assesses Korea's financial crisis in 1997 and discusses the reforms undertaken after the crisis. Fiscal policy as a macroeconomic policy has been virtually nonexistent in Korea.
