An additional budget of 115 trillion won is put into operation due to the expansion of the money supply in preparation for a rise in interest rates.
Following the 67 trillion won last year, the 15 trillion won in March this year, the 115 trillion won supplementary budget was put into the 33 trillion won supplementary budget in June to stimulate domestic demand, and it was packaged as a rigid expense to maintain the system of ‘support for the vulnerable’.
"The economy is recovering a little bit faster, but not all sectors are recovering at the same time," said Lee Won-won, 1st Vice Minister of the Ministry of Strategy and Finance. The purpose is to make the economy go to the entire economy,” he said on the 28th regarding Article 33 of the supplementary budget.
In the supplementary budget explanation, the government set the economic goals for the second half of the year, 'complete economic recovery' and 'structural transition to a leading economy', and stated that it was a policy to resolve corona inequality by economic growth rate of 4% or more and employment recovery. Foreshadowing of increased rigidity expenses.
In Reaganomics in the 1980s, which led to the military expansion of the Cold War system through expansionary fiscal supply, the response to the interest rate hike in response to inflation seems to be the background of the fiscal expansion by the Moon Jae-in administration's supplementary budget.
The Moon Jae-in administration’s republican hardline conservatism followed a strategy that led to a trade deficit and twin deficits as the fiscal deficit grew due to intensified arms race.
In Japan's domestic demand boost, retail sales in May increased by 8.2% compared to the same period of the previous year, and retail sales by ordinary people increased significantly compared to the 5.7% increase in large-scale retail stores such as department stores and supermarkets compared to the same period of the previous year.
Japan's Ministry of Economy, Trade and Industry announced on the 29th that retail sales in April increased by 12.0% year-on-year, the third consecutive month of increase.
Korea's retail sales in June rose 2.4% MoM, the third consecutive month, as sales of durable goods such as passenger cars, semi-durable goods such as clothes, and non-durable goods such as cosmetics increased.
Compared to the same month of the previous year, sales of semi-durable goods such as clothes (-5.8%) decreased, sales of durable goods such as passenger cars (29.2%) increased 6.3%, and the growth rate of imported cars and luxury consumer goods was large.
The Organization for Economic Cooperation and Development (OECD) said that the United States will lead the global economic recovery with $6 trillion in stimulus funds, and will increase production in China, Japan, and Europe by up to 0.5 percentage points and in Canada and Mexico by up to 1 over the next 12 months. The Wall Street Journal reported on the 28th that it was expected to increase by percentage points.
Credit rating agency Moody's data show that U.S. household income continues to surge during the coronavirus period due to the expansion of monetary stimulus, and last year U.S. households accumulated $2.6 trillion in “excess savings” compared to the previous year, and spent a lot of money on foreign products in consumption. wrote the journal.