Dealing with debt
Article Abstract:
It is vital for politicians and bankers in Asia to realize that efforts must be made to both reduce debt and stabilize currencies. Some observers believe that Asian countries should adopt a peg in order to bring currency stabilization, as is already the case in Hong Kong, but this would only be effective if governments are truly willing to exercise financial discipline. Others place emphasis on the need to keep liquidity tight, while others suggest that benefits would be gained from the creation of a single agency to purchase the foreign liabilities of struggling domestic banks.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1998
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Watch for social unrest
Article Abstract:
It is possible that currency devaluations in Asia will lead to social unrest, as ordinary people will have to pay more for everyday items. Devaluations also lead to high interest rates, which in turn restrict growth and have a negative impact on job security. If social unrest emerges, then politicians are likely to consider change in order to secure their survival. Voters are increasingly interested in personal wealth, and will therefore be willing to support politicians who can prove that they can make ordinary people prosperous.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1998
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Comment about this article or add new information about this topic: