摘要：The author finds that equilibrium output for Korea has a positive relationship with real M2, real deficit spending, stock prices, the government bond/GDP ratio and real depreciation of the won and a negative relationship with the expected inflation rate. Although won depreciation is statistically significant at the 1% level, it would take approximately 8.62% of real depreciation to raise real output by 1%. Policy implications are that it would be appropriate to maintain the stability of the won, that deficit spending is significant but the impact is relatively small, and that the current ratio of government domestic debt to nominal GDP is not too high to contribute to economic growth.
关键词：Government debt; Stock prices; Won depreciation; Money demand
