Constraints on UCMPs in EMEs A more difficult question is whether emerging economies should use unconventional policies when facing secular stagnation, when global liquidity is not sufficient. The chance of returning to very low inflation and low growth is significant for Korea and other Asian emerging economies, such as Thailand and China, considering their rapid aging and earlier experiences of low inflation.
The economy is thus unlikely to fall into a recession due to domestic factors for the time being. Also, as I have mentioned, the financial system has been improving significantly.