If a public guarantee can prevent insolvency, it is only after having tested its value in the markets. If a public guarantee serves to cut out the markets and replace them with central bank liquidity it would contravene the principle of an open market economy with free competition and could be seen as a circumvention of the monetary financing prohibition.
Together with the continuing price stability, this has helped lower the inflation expectations of economic agents. The case is much the same in Korea. Both consumer price and core inflation rates are running at levels some two percentage points lower than those we saw here prior to the currency crisis.