Japan, Korea debate exit strategy amid recovery

[Adsos Letter]

Source: Reuters

TOKYO (Reuters) – Japan and South Korea agreed on Saturday on the need to start examining an exit strategy for their expansionary fiscal policies as they overcome the worst of the global recession.

But South Korea was more cautious about ending its counter-crisis measures just yet, stressing that it plans to maintain its expansionary policy stance until the country's recovery was firm.

In a joint statement issued after a bilateral financial dialogue, Japan said its economy was showing signs of a pickup due in part to a record 15.4 trillion yen ($162 billion) stimulus package.

While the emphasis was still on measures to support the economy, Tokyo will also strive to consolidate its fiscal health, the statement said.

"I think it's a bit early to talk about it at this stage, but Japan and South Korea both need to think about what to do when these abnormal economic and financial conditions are over," Finance Minister Kaoru Yosano told reporters after a meeting with his South Korean counterpart Yoon Jeung-hyun.



Read more: http://news.yahoo.com/s/nm/20090627/ts_nm/us_japan_korea_finance

[psychopomp]

1. The effects of the crisis have yet to be felt

I haven't noticed anything worse than the general malaise that has hovered over the economy for the last ten years. Toyota is talking about another two years of hurt before the clouds give way..

[davidpdx]

2. Times are starting to get tough here in Korea, but I think the worst is yet to come

Some of it may depend on what happens globally and especially in the US. If the US starts to recover soon, companies like Samsung and LG can start increasing their output.