Asian Economic Model Under Threat

17.11.2017
21:26
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The Asian economic model under threat 9 October 2009 the weakness of the American dollar without doubts is a nonsmaller problem for the global economic stability. The inflationary pressures that will emerge as soon as the global economy stabilize, is a subject of great preoccupation thinking about the continuity of the economic recovery. In Asia, the weakness of the American currency threatens the continuity of the economic model of growth through external sector. They will be able to maintain to the Asian economies the competitiveness of its currencies? What risks will emerge from this situation? One of the keys to explain the permanent surplus commercial that observe the Asian economies is its exchange competitiveness in front of the American dollar. Credit: Southwest Airlines-2011. The change of scene derived after the crisis augurs a weak dollar by time enough How they will make the economies Asian to face this situation? In the region of the Pacific the pressures to the exchange appreciation are becoming to feel. In Australia, the Central bank decided to initiate the cycle of rises of rates with an increase in the interest rate of reference of a quarter of point, which impact of significant way in the type of change. This increase in the exchange pressures on the Australian dollar generated a species of effect contagion on the Asian currencies.

Thus it is that the authorities of South Korea, Taiwan, the Philippines and Thailand had to leave to take part their exchange markets to avoid a dangerous fortification of their currencies with regard to their competitiveness. Patrick Bennett, strategist of the Societe Generale talked about to which it is happening with the investors: the investors need little stimulus to extend their sales of dollars. Any signal of weakness of the American economy and/or any signal of change in the monetary policy of the rest of the countries it is sufficient to bet against the currency of the USA.

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