CHAPTER 1 Inflation’s Role in Optimal Monetary-Fiscal Policy(Eric M. Leeper and Xuan Zhou) 　1. Introduction 　2. Model 　3. Fully Optimal Policy 　4. Optimal Policy Analytics: Flexible Prices 　5. Optimal Policy Analytics: Sticky Prices 　6. Numerical Results 　7. Concluding Remarks 　References 　Appendix CHAPTER 2 Transmission Mechanisms of the Public Debt(Tack Yun) 　1. Introduction 　2. The Public Debt and the Empirical IS Curve 　3. The Implication of the Empirical IS Curve for the Determinacy of the Equilibrium Dynamics 　4. Business-Cycle Implications of the Empirical IS Curve: Non-Keynesian Effects of Government’s Budget Surplus 　5. Market Friction of Government Securities and Sovereign-Risk Based Channel 　6. Time-Varying Risk Preferences and Convenience-Yield Based Channel 　7. Market-Segmentation Based Channel 　8. Expectations Based Channel 　9. Conclusion 　References 　Appendix105 CHAPTER 3 Growth Slowdowns Redux(Barry Eichengreen, Donghyun Park, and Kwanho Shin) 　1. Introduction 　2. Data and Methods 　3. Slowdowns 　4. Correlates 　5. Determinants 　6. Conclusion and Additional Thoughts 　References 　Appendix CHAPTER 4 Pension Reform, Fiscal Impact, and Savings(Sang-Hyop Lee) 　1. Introduction 　2. The Model 　3. Impact on Labor Income and Fiscal Sustainability 　4. Simulation Results 　5. Conclusion 　References CHAPTER 5 Demographic Changes, Economic Growth, and Fiscal Rules in a General Equilibrium Model of Overlapping Generations(Dongwon Lee and Weh-sol Moon) 　1. Introduction 　2. Model 　3. Quantitative Analysis 　4. Concluding Remarks 　References CHAPTER 6 Trade Liberalization, Growth, and Bi-polarization in Korean Manufacturing: Evidence from Microdata(Chin Hee Hahn) 　1. Introduction 　2. Exporting, Productivity and Bi-polarization 　3. Trade Liberalization and Wage Skill Premium 　4. Concluding Remarks 　References CHAPTER 7 Did China Tire Safeguard Save U.S. Workers?(Sunghoon Chung, Joonhyung Lee, and Thomas Osang) 　1. Introduction 　2. Overview of China Safeguard and the U.S. Tire Industry 　3. Data and Descriptive Statistics 　4. Empirical Method and Results 　5. Potential Mechanism 　6. Concluding Remarks 　References CHAPTER 8 Korea’s Income Inequality: The Trend and Major Issues(Kyungsoo Choi) 　1. Summary and Major Findings 　2. Income Inequality Trend 　3. Contribution to Inequality by Income Sources 　4. Functional Distribution of Income 　References CHAPTER 9 Development Effectiveness of the Paris Declaration: An Empirical Evaluation(Kye Woo Lee) 　1. Introduction 　2. Literature Review 　3. Empirical Evaluation Method and Data 　4. Empirical Test Findings 　5. Conclusion and Recommendations 　References 　Appendix CHAPTER 10 Quantifying the Speculative Component in the Real Price of Oil: The Role of Global Oil Inventories(Lutz Kilian and Thomas K. Lee) 　1. Introduction 　2. A Review of the Structural Oil Market Model 　3. Alternative Proxies for Global Crude Oil Inventories 　4. Estimation Results 　5. Conclusion 　References CHAPTER 11 The Welfare Cost of Structural Uncertainty(Young Il Kim ) 　1. Introduction 　2. Analytical framework for macroeconomic welfare analysis 　3. Welfare analysis under the CRRA preference 　4. Welfare analysis under the EZW preference 　5. Conclusion 　References 　Appendix CHAPTER 12 Evaluation of Survey of Professional Forecasters in Greenbook Forecast Error Loss(Tae-Hwy Lee and Yiyao Wang) 　1. Introduction 　2. Data 　3. EKT Method 　4. Asymmetry in Greenbook’s Loss Function 　5. Evaluating SPF in Greenbook Forecast Error Loss 　6. Conclusions 　References 　Appendix CHAPTER 13 Market Structure and Cost Pass-through in Retail(Gee Hee Hong and Nicholas Li) 　1. Introduction 　2. Model 　3. Data Description 　4. Market Share, Vertical Structure and Pass-through 　5. Macroeconomic implications 　6. Conclusion 　References 　Appendix CHAPTER 14 The Dynamic Relations between Market Returns and Two Types of Risk with Business Cycles(Xiaoquan Jiang and Bong Soo Lee) 　1. Introduction 　2. Empirical Method 　3. Data Construction and Description 　4. Empirical Dynamic Relations 　5. Concluding Remarks 　References