ABSTRACT
As an open economy at both fi nancial and export fronts, Korea was one of the countries hit most directly by the global crisis in the fourth quarter of 2008. Immediately after the Lehman Brothers bankruptcy fi ling in September 2008, both currency and stock values collapsed by more than 30 percent and foreign reserves declined by approximately 20 percent during the three months until the end of the year. Korea’s export growth rate (year-on-year) also collapsed at a drastic pace from 27.6 percent in September to −19.5 percent in November 2008.
