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Exit Strategy (Dong-Won)

Arthur Garbayo indicated the report, Exit strategy to restore fiscal health, by Lee Dong-Won, for SERI. Based on economic agent´s strategic responses to the fiscal exit strategy, this report presents three likely scenarios. To restore fiscal discipline, the government should refrain from creating a supplementary budget. The Korean government has set up a supplementary budget every year since 1999 (excluding 2007) and its fiscal discipline has weakened steadily.


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