South Korea fact of the day

Although inflation in the late 1970s was below the 1974-1975 level, it was high by post-Korean War standards.  It was up from 16% in 1977 to 22% in 1978 and 1979.  The average rate of inflation in Korea in the period 1962-1969 was 17.3%.  In the period 1970-1979 it was 19.3%.

You will note that  South Korea, during those years and subsequently, was one of the greatest growth marvels in all of human history.

The point is not that we should aim for such high rates of inflation today, rather that if growth is strong an economy can stomach more inflation than you might think.

That quotation is from Alice Amsden, Asia’s Next Giant: South Korea and Late Industrialization.