This paper has investigated the responses of consumption and current account in Korea, to the fiscal policies using a discontinuous time horizon model in which the fiscal policy effects can be different according to whether economic agents have the finite or infinite time horizons. This paper uses the Korean quarterly data for the period 1976:I -1997:IY to test the theoretical model empirically. The empirical results show that private consumption and current account are not significantly affected by government debt in contrast to conventional Keyensian macroeconomic model. Ricardian equivalence proposition with the infinite horizons seems to be more persuasive to explain the ,fluctuation of consumption and current account in Korea.