Where did the current slump in domestic demand come from

Where did the current slump in domestic demand come from

The following is the volume of M1 calls in Korea.
Since 1970, the amount of M1 money in Korea has increased significantly, but there have been three cases where the amount of soil has not increased and has decreased for a considerable period of time.

The first is the 1998 financial crisis, the second is the 2008 global financial crisis, and the third is the current phase after 2022.

The domestic economy, which is currently viewed by the amount of M1 money, is longer and more fatal than the 1998 financial crisis or the 2008 gold oil crisis. In other words, the domestic economy is declining due to a severe money drought, and as a result, it is the most important cause of public sentiment.

This money drought is a phenomenon that appeared when the Moon Jae In government tightened the total amount of bank loans and DSR regulations after inducing inflation by releasing large amounts of money under the pretext of Corona. In addition, by introducing real estate-related regulatory policies, money is not circulating on the market as real estate transactions are not actively carried out.

Despite having to manage the economy by controlling the money supply, the head of the Bank of Korea is on the back burner as if the domestic economy is the role of the government. Despite the fact that real estate prices across the country are falling due to a money drought, they have said that it is difficult to change college entrance exams to curb the rise in housing prices in Gangnam, and that it is difficult to cut interest rates because household loans have to be managed.

Now, in Korea, the head of the Bank of Korea, which controls the currency, is focusing on real estate prices and household loans in Gangnam, and the head of the Financial Supervisory Service, who has to oversee financial stability, has been preoccupied with lending for the economy. Perhaps the current government's public sentiment is divided, and if the first contribution is given, it will be the head of the Bank of Korea.

In any case, domestic demand will hardly recover unless the Bank of Korea fulfills its responsibility to regulate the economy properly. Crisis-like difficult situations will continue for a considerable period of time. The Bank of Korea is likely to continue the sluggish domestic economy by unwinding the currency little by little like peeing on its frozen feet only after the economy collapses.