When North Korea experimented, unsuccessfully, with old-school Keynesianism | NK News
NK News Logo
November 22, 2024
NK News is hiring
Analysis

When North Korea experimented, unsuccessfully, with old-school Keynesianism

Facing crises, the DPRK attempted a crude imitation of the early 20th century economist's ideas

Before Kim Jong Un’s rise to power, the North Korean government principally focused on wage and price controls as a centerpiece of macroeconomic policy. Now North Korean economic policy is dominated by incentives and innovation. But before that, they tried a spot of demand-side policy that was quite redolent of the post-war Keynesianism.

To be fair to Keynes and his many supporters, he would definitely not have advocated what the North Korean government did in the 2000s. But in some of their policies and some of their diagnosis of the problems they faced, a bastardized reading of John Maynard Keynes can be discerned. The focus was on the demand-side, not the supply-side.

Become a member for less
than $5.75 per week.

  • Unlimited access to all of NK News: reporting, investigations, analysis
  • The NK News Daily Update, an email newsletter to keep you in the loop
  • Searchable archive of all content, photo galleries, special columns
  • Contact NK News reporters with tips or requests for reporting
Get unlimited access to all NK News content, including original reporting, investigations, and analyses by our team of DPRK experts.
Subscribe now

All major cards accepted. No commitments – you can cancel any time.