Herman

The success of East Asian countries such Singapore, South Korea, Taiwan and China has long been link to the government’s ability to ensure macroeconomic stability thus leading to good gross domestic product (GDP) growth.Table 1 shows the GDP growth rate of East Asian economies compared to major developed and developing countries. The governments accomplish this through the setting of a good macroeconomic fundamental model and timely intervention in the economy. This paper aim to understand the impact on the government macroeconomic policy and intervention has on the long term growth of this East Asian countries with examples from Singapore and Korea.

Table 1 Comparison: Gross Domestic Product Growth % (Past 5 Years)

|Country Name |2008 |2009 |2010 |2011 |2012 |

|China |9.60 |9.20 |10.40 |9.30 |7.80 |

|East Asia & Pacific (developing only) |8.48 |7.48 |9.66 |8.31 |7.48 |

|Europe & Central Asia (developing only) |2.96 |-4.78 |5.93 |6.32 |1.89 |

|Euro area |0.39 |-4.40 |2.03 |1.53 |-0.57 |

|Korea, Rep. |2.30 |0.32 |6.32 |3.68 |2.04 |

|OECD members |0.08 |-3.68 |2.87 |1.69 |1.28 |

|Singapore |1.75 |-0.79 |14.78 |5.16 |1.32 |

|United States |-0.36 |-3.11 |2.38 |1.80 |2.21 |

Source: World Bank Data

The term macroeconomic...