New Fiscal Rule in Korea Predicted to Cause 1% GDP Loss by 2050.
A new fiscal rule in Korea sets limits on debt and deficits. Using a model, researchers found that meeting this rule will require significant fiscal adjustments, like raising taxes and cutting spending. These changes are expected to have a negative impact on the economy, with a projected GDP loss of over 1% by 2050. However, actively managing debt levels could help reduce this loss, although it may lead to more economic instability.