In surprise move, South Korea cuts interest rate to record low

 

 

http://www.straitstimes.com/business/economy/in-surprise-move-south-korea-cuts-interest-rate-to-record-low

The article reports the recent all time lowering of Interest Rates by the Central bank of Korea. The Interest Rates level, the lowest till date, is supposed to counter decreasing Consumption, low Investment and pressures on the Economic Growth. There are additional pressures from falling Exports along with decrease in domestic Consumption.

 

Topics include Expansionary Monetary policy, Interventionist Supply side policies, Interest Rate, Fiscal Deficit and Economic Growth. Explain using the national Income equation and Macroeconomic diagrams.

 

Evaluation will cover role of Interest Rates for Economic Growth, relationship between Interest rates, and effectiveness of Expansionary Monetary policy and Interventionist Supply side policies in short term and long term.

 

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