Governments must manage excess liquidity and stop asset bubbles

ON ASIA

VANESSA DONEGAN, fund manager at Threadneedle on Asia

For more on Asia, search Adviserhound.com Asia’s economies are continuing to perform well, helped by the strength of intra-regional trade alongside the twin drivers of domestic demand – healthy consumption and investment. Abnormally low interest rates and a well capitalised banking system have helped to drive consumption and, as output gaps close and companies seek to invest to maximise their growth potential, we are seeing an upturn in capital expenditure in a number of industries. Unusually, Asia has been in the vanguard of monetary policy tightening since the onset of the global...