Asian nations fear global liquidity may lead to asset bubbles

Greater Noida: A global liquidity infusion risks leading to asset bubbles, China, Japan, South Korea along with a host of Southeast Asian nations said on Friday.

Many emerging nations are cautious about easier monetary policy in advanced economies, including Japan, fearing it may result in disruptive bubbles and currency appreciation, and make their exports less competitive.

The ASEAN group of nations, plus China, Japan and South Korea are strongly committed to enhancing efforts to respond to risk from global monetary easing, they said in a joint statement at the Asian Development Bank’s annual meeting in India.

Reuters