Notably, some studies have shown that the ratio of Asian exports for final consumption within Asia has risen, though varying among individual countries. For example, approximately 70 percent of Indonesian exports to China are for final consumption in China. Such ratios for Singapore and Korea are 50 and 40 percent, respectively. That said, it is wise not to jump quickly to conclusion because Asian economies and trade remain critically linked to the G3 economies. While this negative spillover from advanced economies to Asian economies could be partially cushioned on the trade side, I have greater concern on the potential spillover through volatility in international capital flow and financial market movements. In addition to the risk aversion in time of market stress, emerging market economies have tried to live with spillover from exceptionally easy monetary policy in advanced countries. Such practices have created excess global liquidity leading to volatile capital flows into emerging market countries  BIS central bankers’ speeches  1  including Thailand. Moreover, excess global liquidity has been an important factor behind the rapid rise in oil and other commodity prices. Unless the advanced economies manage to get themselves out of sluggish growth path, all of us have to be vigilant and cannot rule out the possibility that the US may need to find creative policy actions to stimulate its economy.
Sabine Lautenschläger: Fostering global growth Speech by Ms Sabine Lautenschläger, Member of the Executive Board of the European Central Bank, at the panel during the G30 International Banking Seminar, Lima, 11 October 2015. *  *  *  I would like to thank Jacob and Jean-Claude for inviting me to participate in this panel. You will not be surprised that I will focus on the growth challenge faced by the euro area countries in my intervention. Let me stress from the outset that I believe that the euro area can make a much stronger contribution to global growth than it has done so far. But for this to happen, we need a stronger reform impetus in many euro area countries. To substantiate this claim, I would like to address two questions: first, where do we stand on growth and reforms in the euro area? And second, which structural reforms are still needed to support stronger and sustainable growth? Where do we stand on growth and reforms in the euro area? Growth has been recovering in the euro area, albeit at a modest pace. Output growth has been gathering pace throughout 2014 and in the first half of 2015 and employment has been increasing. However, developments are still uneven across member countries and it is not clear that the recovery can be sustained in the medium term.