In other words, from every additional euro that is earned, around 50 cents are deducted. Moreover, social benefits which are at a high level by international standards act as a reservation wage. Many experts agree that the demand for labour in Germany also suffers from the very complex legal arrangements relating to work contracts.
In this situation, in order for the Bank of Korea to meet the nation’s expectations and fulfill the role entrusted to it, we need to make ground-breaking improvements in our ways of perceiving reality and carrying out our duties, as well as in our methods of policy operation.