Korea’s Rhee Warns Against Japan-Like Stimulus to Combat Aging
- Central bank chief urges painful reforms to boost productivity
- Fertility crisis raises concerns over low rates to spur growth
This article is for subscribers only.
South Korea should avoid following Japan’s lead of using fiscal and monetary stimulus to combat the challenges of an aging economy, central bank Governor Rhee Chang-yong said, urging reforms instead to boost fertility.
Aging is a rising concern in the developed world and Korea is among the hardest-hit together with Japan. South Korea shattered its own record for the world’s lowest fertility rate last year, adding to long-term pressure on policy makers to keep interest rates low and fiscal stimulus ample to boost growth.