'Obama's Economics Teacher' Furman on South Korea's Martial Law and Impeachment: "Economic Situation May Worsen" [American Economic Association 2025]

2025 AEA Annual Meeting
Jason Furman "Political Turmoil Negative for Economy"
Claudia Goldin "Bad Things... Korea is a Stable Democracy"

Harvard University professor Jason Furman warned that the political turmoil in Korea caused by martial law and impeachment proceedings could have a negative impact on the economy.

Jason Furman, Professor at Harvard University. San Francisco=Special Correspondent Haeyoung Kwon

Professor Furman met with Asia Economy at the '2025 Annual Meeting of the American Economic Association (AEA)' held in San Francisco, USA, from the 3rd to the 5th (local time), and said about the impact of martial law and impeachment proceedings in Korea on the economy, "Political turmoil can never be good for the economy."

He said, "So far, the Korean stock market is not something to worry about greatly," but added, "The situation could worsen." This is interpreted to mean that if the impeachment situation prolongs, Korea's external credit rating could decline, and foreign capital could flow out of the domestic financial market.

Professor Furman emphasized, "I hope Korea's political stability will be strengthened."

Furman, who served as the Chairman of the White House Council of Economic Advisers under the Barack Obama administration, is known as former President Obama's economic teacher.

Claudia Goldin, Harvard University professor and 2023 Nobel Prize in Economics laureate, also responded to questions about Korea's martial law and impeachment proceedings by saying, "I do not know much about Korean politics," but described it as a "bad thing."

Professor Goldin said, "It is good for governments to have continuity," and added, "We believe Korea is a very stable democracy."

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