Many economists are warning of deflation such as that experienced by the global economy in the 1930s when consumers no longer wanted to buy anything because they all expected prices to continue to fall. Isn’t that reason enough for decisive intervention? I don’t want to gloss over the situation, but you can’t speak of deflation at the moment.
In order to increase the ability to absorb external shocks from massive capital flows, the priority seems to strengthen the function of foreign exchange and financial markets in the region as a whole. In this regard, frequent exchange of information, deep analysis and concerted efforts by the EMEAP central banks will contribute to addressing risks and vulnerabilities in the markets.