<Anchor> A

friendly economy, reporter Kwon Ae-ri is with you. Reporter Kwon, there was an important announcement in the United States overnight that would affect the flow of money around the world?

<Reporter>

Yes. The central bank of the United States officially announced overnight plans awaited by the most curious about the global financial markets, including our stock market. He said he decided to introduce the so-called average price stability target system.

What does this mean, in the future, the US will maintain its current policy of circulating a lot of money, even if inflation occurs a little, even if inflation occurs a little, and interest rates will not continue to rise for a while.

The inflation rate that the US pursues is always around 2% per year, but in the future, all you need to do is achieve this target on a long-term average.

So, even if the inflation rate is 3% or more after about a year or two, you only need to pay an average of 20,000 as these days, when the inflation rate fell far below 2% due to the recession before, this is the average price stabilization target system.

In other words, if you release a lot of money like these days and the liquidity in the market continues to overflow, the value of each dollar may decrease, and the real price may rise a little. Still, it means that they will not raise interest rates if they can.

The US is a country that has been paying attention to raising interest rates in advance if inflation is likely to rise a little, so it can be said to be a very disruptive policy change.

Why this matters to us too is that if the US keeps releasing money and not raising interest rates, it becomes easier for us to keep releasing money and keep interest rates low. Not just us, but the whole world.

Efforts to launch the game with liquidity will continue for a considerable amount of time around the world, including us, and it can be said that it was confirmed last night.

The real economy is a mess, but there may be some side effects such as rising stock prices, rising prices, or bubble in asset prices such as real estate.

It's not a big deal because there are rumors in the market that it is likely to be announced today (28th). All night the New York Stock Exchange also went up again. The Korean stock market is also expected to start rising today.

<anchor>

Yes. i See. However, if you think about this a bit in the opposite direction, it may be said that the economy will not be able to survive easily enough to have to continue to release money. In fact, is the Bank of Korea's forecast for Korea's economic growth rate -1.3% yesterday? Did you hold it down?

<Reporter>

Yes. Last May was the latest outlook, when the Bank of Korea's growth rate forecast was -0.2%. It was lowered by more than 1 percentage point more than then.

Above all, a larger corona spreading trend than last March had a decisive effect. Last May was when there was a relative confidence that the spread of corona in Korea was being caught.

Due to the nature of our economy, where exports are important, the problem is that activities around the world have been severely contracted due to the coronavirus, but our own number was -0.2 when we assumed that in the second half of the year, domestic demand would also rebound and economically rebound.

However, it is certain that the domestic blow is far greater than what has been thought so far. Among the growth rate forecasts issued by international organizations, the most recent was the OECD's forecast for the Korean economy this year.

By the beginning of this month, the forecast was -0.8%, but the OECD forecast is a number that did not consider the corona re-proliferation tax that is currently appearing. If the corona continues to spread, the OECD also predicted that our growth would be -2% this year.

<Anchor> Since

these forecasts are actually those parts that did not anticipate the 3rd step of distance, I think it could become really serious when the 3rd step we are considering.

<Reporter>

Yes. Step 3 of distancing is a level of containment that we have never done.

Exports and foreign exchanges cannot survive as expected, but it would be difficult to avoid the situation in which domestic demand is really freezing up to the third stage. Although the reduction in activity is also reduced, the prolonged corona spread is also a big concern.

This year's -1.3% This forecast assumes that the global corona spread has subsided after the middle of next year, and our re-proliferation trend stops at the level at the beginning of this year, and that we can make it possible with the two-step distance we are doing now.

If this re-proliferation situation continues until this winter, the growth rate this year will drop to -2.2%, and it will only grow 1.2% next year.

It is certain that the first time in 22 years after the financial crisis will be reversed, and now the degree of pain is a problem.

In the future, decisions on our economic policies and monetary volume will be revised or come out in succession depending on the prospects that continue to change. However, it suggested that interest rates could be lowered further depending on the situation.