Korea also offers a successful example of what can be achieved under the IMF’s structural adjustment program. Through bold structural reform, it was able to overcome, in a prudent manner, the foreign currency crisis that broke out in 1997, again exhibiting a characteristic dynamism.
It does not solve, but rather causes, economic problems. Monetary stability, by contrast, is a major, albeit on its own no doubt insufficient, basis for growth and employment. Second, an independent central bank can safeguard stable money more easily. After all, it is easier to pursue a steady, medium-term-oriented approach, apart from day-to-day political concerns.