But it wouldn’t do any harm for growth to be slightly stronger than it is right now. This is where governments need to step in. They need to adopt reforms that encourage job creation in the productive sectors of the economy. The eagerness to embrace reform was strong immediately after the crisis, but it quickly waned, regrettably, once the dust began to settle.
It follows that in a small open economy such as Korea, domestic share prices, interest rates and exchange rates often show unstable fluctuations even when domestic economic fundamentals remain strong. BIS Review 120/2007  1  In addition, owing to the increased influence of overseas factors, the central bank's ability to control major policy variables such as interest rates has been weakened.