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The G-20: Asia's Central Banks Face a Policy Dilemma
With officials headed to Seoul for the meeting of the Group of 20 economies, the representatives of China, Korea, Indonesia, and other countries were expected to voice their anxiety over the challenges they face. They have already vented freely at the Federal Reserve for its plan to spend another $6...
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Published in: | Bloomberg businessweek (Online) 2010-11, p.1 |
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Main Author: | |
Format: | Magazinearticle |
Language: | English |
Subjects: | |
Online Access: | Get full text |
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Summary: | With officials headed to Seoul for the meeting of the Group of 20 economies, the representatives of China, Korea, Indonesia, and other countries were expected to voice their anxiety over the challenges they face. They have already vented freely at the Federal Reserve for its plan to spend another $600 billion on asset purchases to lower US rates even further. Until recently, many Asian governments allowed free flows of capital and kept their exchange rates fixed. To avoid another flood of foreign capital, the central banks of Malaysia, Thailand, and Korea have paused in raising interest rates. Capital controls may be the only answer for some governments. To make outside investors pause, Thailand removed a 15% tax exemption for foreigners on income from domestic bonds. |
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ISSN: | 0007-7135 2162-657X |