Chapter 3: Life after QEs by Pongsak Hoontrakul Abstract As quantitative easing (QE) winds down, the world will experience subpar growth and disinflation with diminished expectations and increased uncertainty. QE transformed relative valuation, making assets overvalued in the long term and prone to correction. Both East and West must adjust their economies and priorities in response. The old formula of exporting commodities and assembling goods with cheap labor will no longer suffice to drive growth in Asian emerging markets. Rapidly increasing urbanization and building of essential infrastructure will serve better in boosting Asian economies from their relatively low base. In the long run, expanding Asian bond markets and increasing the use of securitized products will help lead Asia to equal status in global trade and finance.
Posted on: Sun, 14 Dec 2014 13:24:21 +0000
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