 Global imbalances and the development of capital flows among Asian countriesOECD Journal: Financial Market Trends, 2012, vol. 2012, issue 1, 81-112 Abstract: During the current global crisis, capital inflows into Asian countries have increased, leading to excess liquidity and the risk of potential asset bubbles. A sudden reversal of these inflows would have negative effects on the economies in question. Given the impact of global capital movements on domestic financial systems and thereby on domestic economies, in several Asian countries certain macro-prudential regulations have been put in place, and capital controls and micro-prudential regulations have re-emerged as important tools to handle the issues related to capital inflows from outside of the region. It is important to ensure that global imbalances do not become a source of instability. The issue, thoroughly discussed after the Asian crisis a decade ago, is “using Asian savings for Asian investments” through the development of bond markets and SME’s financial inclusion. Against the backdrop of huge potential demands for infrastructure investment in the Asian region, this note proposes the issuance of “infrastructure revenue bonds” to help develop bond markets in Asia. To facilitate financial inclusion of SMEs, which outnumber other types of business in Asia, this note also proposes creating an SME database and developing regional trust funds. Date: 2012 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oec:dafkad:5k91hbvff0xw Access Statistics for this article More articles in OECD Journal: Financial Market Trends from OECD Publishing Contact information at EDIRC. |
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