earticle

영어

This paper examines how the optimal control techniques could be applicable to calculate the optimal size of the credit guarantees that would coincide with various policy objectives. The numerical example illustrates the usefulness of the methods for this purpose suggesting the main findings as follows: (1) It is not always optimal to immediately cut down the credit guarantees, as they are closely linked with the amount of investment expenditures that has a great impact upon the national economy. Four out of six cases reveal that it is the best to increase the credit guarantees in the first period and then drastically decrease them thereafter. (2) If the government regards the reduction of the credit guarantees as more important than balanced budget, national economy enjoys a rapid economic growth with the credit guarantees approaching the desired paths. It is noticed, however, that the government should pay the price of the serious aggravation of the budget deficits.