Summary of Policies to Ensure Asia’s Sustained Economic Success

Tao Zhang

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Policies to Ensure Asia’s Sustained Economic Success summary

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Asia’s economies are experiencing a period of strength. According to policy expert Tao Zhang, their governments should view this success as the right time to bolster their protections against unpredictable events. In this brief article, he encourages officials to fortify policy buffers, keep a watchful eye on inflation and promote greater financial inclusion to reinforce economic resiliency. getAbstract recommends this plainly written prescriptive analysis to investors and executives for its timely insights.

About the Author

Tao Zhang is a deputy managing director at the International Monetary Fund.

Summary

The IMF forecasts global growth of 3.9% in 2018 and 2019. Still, financial market volatility attests that risks remain. The Asian region, in particular, is in good condition to withstand exogenous shocks, a situation which presents a highly desirable window of opportunity to “fix the roof while the sun shines” in three main areas:

“Policy buffers” – Over the 2007 to 2018 period, Asia’s monetary and fiscal defenses against unexpected capital outflows have weakened. In the aggregate, corporate and household debt increased, while public debt rose from 46% to 59...

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