01853cas a2200241 a 4500 AALejournalIMF006138 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451873962 1018-5941 BD-DhAAL BD-DhAAL Eskesen, Leif. Countering the Cycle-The Effectiveness of Fiscal Policy in Korea / Leif Eskesen. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The Korean authorities having taken decisive and proactive fiscal measures to help stem the fallout from the current global economic and financial crisis, with the size of the fiscal stimulus well-above the average response of other G20 economies. In this context, a key question is how effective fiscal policy is as a stabilization tool, especially considering the high openness of Korea's economy. Results based on a macroeconomic model calibrated for Korea provide a strong case for using counter-cyclical fiscal policy, especially if measures appropriately focus on spending with a direct demand impact such as investment and targeted transfers. It also demonstrates the importance a complementary monetary response and the benefits to an open economy such as Korea's of global coordination of fiscal stimulus. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2009/249 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/249/001.2009.issue-249-en.xml IMF e-Library