[Editorial] Government, listen to Warning of Overheating Economy

No one dislikes economy to get better.

However, gaps in views, recently, between civil organizations and government pertaining to economic situation are widening and measures related to it are getting mingled.

Meanwhile, civil organizations besides the Federation of Korean industries (FKI) forecasted overheating several times and requested government to stop support policy.

Samsung economy research also prospected on 12th that economic growth would reach up to 6 percent only in a quarter and warned that if exports recover, overheating of full scale economy can occur.

Consumer expectation index, National Statistical Office reported in February, recorded the highest since the research began in November 1998, and income of big marts of Ministry of Energy, Commerce, and Industry showed rapid increase of 30.7 percent in last month in comparison to last year February, therefore, it proves steep rise of our economy.

Such overheated signals in object economy points out that it is highly influenced due to Government`s liquidity expansion after three quarters last year in order to promote economy.

It is a problem that property and stock market indicates over heatedness due to its effect however, it causes real concern not only in terms of prices but also it might generate bubble in our economy.

Some private researches even points out if bubble settles down, situation similar to two years ago, when Internet boom disappeared and stock prices showed sudden drop, can reappear.

Views of those researches have strong persuasive power, as it is growth without investment and improvement in productivity.

However, government still resists earlier policy of finance for promoting economy.

The attitude that will change policy when economy grows up above potential growth at least for one or two quarters raises doubt that government overheats economy, ahead of major elections.

As every economy experts knows, to use economy policy like symptomatic treatment after passing two quarters means to give up processing policy.

Government should examine economy, considering different view of policy, and settle down economy through preemptive policy, I urge.