Chronic Inflation in South Korea and Its Consequences Experiences and Lessons

Abstract

Changes in prices in the past thirty-five years (1) Early post-war period (1948-1961) In the early post-war period, the most urgent task facing South Korea was to settle the food price issue. The price of grain at the end of April 1948 was 1,320 yuan per buck of rice (south Korean won, the same below), and by the end of August of the same year, the price of rice had skyrocketed to 2,600 yuan. Since then, food prices have been in a state of soaring and plummeting. In 1948, the United States provided 180 million US dollars in aid to south Korea and 120 million US dollars in 1949, which provided south Korea with the necessary materials to control inflation and laid the foundation for the expansion of production capacity and the overall stability of prices. In March 1950, the authorities Inflation control measures proposed to implement the "15 Principles of Economic Stabilization" were unsuccessful due to the outbreak of the Korean War. followed by