Macroeconomics Stability

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Recommended: Government policies that promote economic growth

I agree to the above statement that macroeconomic stability as well as building long-term growth have been critical in the success of these countries.

What is macroeconomics stability
Macroeconomics stability refers to sustainable economic growth, low and stable inflation, low and stable unemployment and a sustainable balance of payments (BOP) position. These are the four goals that are important for any country to maintain macroeconomic stability. These are measured by key macroeconomic indicators such as GDP growth rate, inflation rate, unemployment rate and balance of payments. It is a “mix of external and internal balance, which in turn implied, in the second case, full employment and stable economic growth, accompanied by low inflation.” (Ocampo, 2007)
The building of long-term growth essentially means the long run economic growth of a particular country. “Economic growth occurs when real GDP increases…Economic growth is a sustained, year-after-year increase in potential GDP (Parkin, 2014:544)

South Korea is one of the leading countries in technology and entertainment with a population of 50.95 million. The government has been constantly making efforts to reinforce the groundwork for long- term growth and improve the real economy. ((KOCIS), 2013)

Economic performance of South Korea over past 6 years (2006-2011)
GDP growth rate
The GDP growth rate of this country expanded 1.1 percent in the third quarter of 2013 over the previous quarter. The economy developed at an average 1.1 percent on a quarter over quarter basis, driven by exports which accounts for half of its GDP. (Tradingeconomics.com, 2013) GDP, or gross domestic product, is the market value of the final goods and services produced within a country in a given t...

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...oad view of macroeconomic stability.
Parkin, M. 2014. Economics. Boston: Pearson.
Thejakartapost.com. 2013. Macroeconomic stability? By what definition?. [online] Available at: http://www.thejakartapost.com/news/2003/05/12/macroeconomic-stability-what-definition.html [Accessed: 30 Nov 2013].
Tradingeconomics.com. 2013. South Korea GDP Growth Rate | Actual Data | Forecasts | Calendar. [online] Available at: http://www.tradingeconomics.com/south-korea/gdp-growth [Accessed: 30 Nov 2013].
Tradingeconomics.com. 2013. South Korea Unemployment Rate | Actual Data | Forecasts | Calendar. [online] Available at: http://www.tradingeconomics.com/south-korea/unemployment-rate [Accessed: 30 Nov 2013].
Ustr.gov. 2013. Korea | Office of the United States Trade Representative. [online] Available at: http://www.ustr.gov/countries-regions/japan-korea-apec/korea [Accessed: 30 Nov 2013].

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