IMF: Asia Playing Crucial Part in Reshaping Global Economy

14 June 2010

Based on its successful economic policy management, Asia will continue to make a major contribution to both global growth and the design of policies to deal with challenges in the post-crisis world, IMF Deputy Managing Director Naoyuki Shinohara said

Based on its successful economic policy management, Asia will continue to make a major contribution to both global growth and the design of policies to deal with challenges in the post-crisis world, IMF Deputy Managing Director Naoyuki Shinohara said

 

In addition to sound macroeconomic policies and the possibility of more flexible exchange rate management, Mr. Shinohara said that “macro-prudential measures can help safeguard financial stability and shield the real economy from disturbances stemming from volatile capital flows.” “In some exceptional circumstances, controls on capital flows may be useful and can provide temporary breathing space during periods of large swings in capital flows.”

 

Not only do policy choices of Asian economies have an important bearing on the global economy, but there are lessons for all in Asia’s skillful economic management through the crisis.

 

Asia’s “economic strength is a lesson in itself—the dividend of effective policies, enduring reforms, and growing regional cooperation,” Shinohara said. While experiences in Asia can benefit countries the world over, they also have broader relevance to the IMF’s efforts to make the international financial system less prone to crises.

 

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