Social and Behavioral Sciences Commons^™

The Winter Of Their Discontent: Pyongyang Attacks The Market, Marcus Noland

Marcus Noland

This paper examines North Korea’s recent confiscatory currency conversion and the subsequent prohibition on the use of foreign currency. The regime has made no attempt to veil its motivations: strengthening the socialist economy by directly attacking the market and the independence from state control that it represents. These policies, coming at an inopportune time when the country is facing economic stagnation, spiraling prices, and a resurgence of food shortages will surely reduce economic welfare. The open question is whether they have sown such discord that these moves will ultimately destabilize the country politically as well.