Asia’s Inflation Trap
Asia has an increasingly alarming inflation problem, but its leaders are reluctant to address it decisively, worried that higher interest rates and stronger currencies will choke off export-led growth. But the longer they delay, the more wrenching the ultimate policy adjustment – and its consequences for growth and employment – will be.
NEW HAVEN – Asia has an inflation problem. The sooner it comes to grips with its problem, the better. Unfortunately, the appropriate sense of urgency is missing.