Former Federal Reserve Chairman Paul Volcker remarked that the Fed’s tapering of its quantitative easing policy is not bad news, because it assumes a recovery of the US economy.
He met with Deputy Prime Minister and Minister of Strategy & Finance Hyeon Oh-seok on February 17 and said, “The tapering is a matter of timing and is not an issue which can be avoided,” adding, “The tapering will progress gradually.”
Mr. Paul Volcker served as the 12th chairman of the Federal Reserve Board from 1979 to 1987. Recently, he has acted as a member of the Economic Recovery Advisory of the Obama administration.
“Korea has robust economic fundamentals and has taken various measures for years to reduce the fluctuations in capital inflow and outflow so as to be less vulnerable to global capital flow situations,” he continued. “The accomplishments and development of the Korean economy have surprised me all the time, and I believe that Korea will be able to do good down the road as well.”
In return, the Deputy Prime Minister said that the two economic crises were a kind of disguised blessing for Korea. “The Korean government has prepared various macroeconomic measures through the recessions, which are now functioning as safety valves for the national economy,” he added.