ABSTRACT
Korea had for a long time been a model economy for many developing countries. It had achieved rapid growth under a reasonably stable macroeconomic environment since the 1960s. This trend of high growth and stable infl ation continued into the fi rst half of the 1990s. Though it no longer grew at double-digit growth rates, the Korean economy still maintained a fairly rapid growth rate of higher than 7 percent per annum on average. Infl ation subsided from 9.1 percent in 1991 to around 5 percent during the 1993-1995 period (see Figure 13.1).
