This research, under intention of finding a theoretical foundation for Korean economy through the new emerging market theory, divides up the objectives into research clan, research cluster, research center phases, although maintaining relativity amon ...
This research, under intention of finding a theoretical foundation for Korean economy through the new emerging market theory, divides up the objectives into research clan, research cluster, research center phases, although maintaining relativity among the phases. The research clan phase is primarily focused on each topic's basic research of individual research teams. To identify uniqueness and universality of Korean economy within context of both the world economy and the emerging economy, the researchers perform teamwise research. Three directions constitute the research clan phase. Firstly, we analyze the causes of business cycles in the real economy sector and the comovements of consumption among different countries of advanced and emerging economies. Taking into consideration the possibility of change in causes of business cycles in emerging countries, we draw on dynamic analysis and estimation of economic data to identify the causes of real economy. Secondly, we analyze the relationship between real and financial sectors of emerging economies using an asset pricing model. As an initial step, the determinations of asset price and interest rate of emerging countries through persistency and volatility of consumption are studied. Thirdly, we study and analyze the issues of monetary and fiscal policies in advanced countries that have implications on macroeconomic policies of emerging economies. Especially, since the constantly increasing government debt is one of the most important issues in advanced countries, we study a harmonious maneuver of fiscal and monetary policies, which take into account the risk of long-term fiscal imbalance. Also we study a macroeconomic model that can analyze the continuous depression of advanced countries including the U.S., and we analyze how a change in macroeconomic policy can affect the private economy. To develop a methodology that accords with the new emerging market theory, we study a macroeconomic model that analyzes the emerging market and economy and develop a methodology for its analysis. The first year of the total three years of the research clan phase is focused on the objective of establishing a first draft of research report for each research team. We collect the economic data of emerging countries and Korea to perform empirical analyses of them, and organize the results on the report. We also organize the results of existing research and determine a new framework for analysis. In the second year, we perform presentations of the drafts at international symposiums, and improve by referencing evaluations and advices of experts in each of the related fields. Therefore, our objective of the second year is to complete second drafts that include contributive results and to submit them to international academic journals. In the last year, we focus on improving our research ability to confirm the publication on international journals, and we begin a preparative research for the transition into research cluster phase.