During the past two decades from 1962 to 1981 Korean economy has experienced a startling development. The gross national product increased at an annual average rate of 8.4 percent during above period. And the exports increase at an average rate of 37....
During the past two decades from 1962 to 1981 Korean economy has experienced a startling development. The gross national product increased at an annual average rate of 8.4 percent during above period. And the exports increase at an average rate of 37.4 percent, the money supply increased at 27.3 percent, the gross investment ratio was 24.8 percent, the annual import ration was 22.5 percent, the manufacturing production ratio increased at 19.0 percent, and the price index and the national saving ratio increased at an annual average rate of 16.9 percent.
In a rapidly changing situation, it has become increasingly important to the policy maker and investors to keep up with new developments in industry in order that they may visualize their proper course of action. But there are limitations in Korean economy system.
After the Five-Year Economic Development Plan during the past two decades, Korean economy marched into the "Take-Off" stage, but we had experienced so many kinds of "growth pain". In connection with our immediate need, we have keep our eyes on the limitation of price control and its current situation as well as the likely direction of its future development.
I started with the Korean price policy and the problems for the economic development in the first chapter and dealed with the limitation of economic variables in relation to the optimum condition. After approaching to the economic growth and the change of price index in the third chapter, I analyzed the limitation of saving ratio relation to the limitation of investment in Korea. In the fourth chapter, I research for the problem of cost-push, the limitation of income policy, and the limitation of the aggregate demand policy in connection with the price policy. And I reached at the final conclusion of the limitation of price policy in Korea.