The Fed can't help Asia's quagmire

By cutting interest rates aggressively, the US is kicking off a global reflation cycle. But will it be enough to boost economic growth in Asia?

It is far from certaináwhether this monetary reflation will be sufficient to sustain a new bull market and boost economic growth in Asia. Global leading economic indicators, especially the US, are still falling, suggesting the economic slowdown still has some way to go. Crucially, it is uncertain how effective monetary easing will at easing the supply side pressure plaguing the global system.

Excess capacity, little profits

The current economic down cycle in Asia reflects more than just deterioration in the external environment. The region is still plagued by continued excess capacity, despite the strong growth reboundáof the past two years. This is due to insufficient reform despite what has been done. The Asian...

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