Japan's Easing Policies Are Talk of the ADB's Annual Meeting
Some Asian officials worry that flows from Japan could destabilize markets, but ADB’s new chief defends monetary easing.
By Allen T. Cheng
Haruhiko Kuroda may have left the Asian Development Bank, but the man and his policies overshadowed the ADBs annual meeting, which concluded Sunday in New Delhi.
Kuroda headed the development bank for eight years before leaving in March to become governor of the Bank of Japan, where he has initiated an unprecedented program of quantitative easing. The impact of a surge in liquidity from Japan on the rest of Asia was a major topic of discussion at the meeting, which gathered Finance ministers and central bankers from the ADBs 67 member countries.
The quantitative easing, or unconventional monetary expansion it is needed to support the growth of those countries to get out of deflation, to stabilize the system, Nakao, 57, a former Japanese vice Finance minister in charge of international affairs, said at a news conference at the end of the four-day meeting. The easing across the globe is needed. It continues to stabilize growth of the global economy, including the emerging markets, but at the same time, it is true we should be mindful of the negative spillovers from the QE and others effects from advanced economies to the emerging economies.....