Prudent regulation helps Asia-Pac economies head off asset bubble
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Sydney
YEARS after the biggest global financial meltdown since the Great Depression spurred debate over how policymakers can head off asset bubbles, tentative evidence is emerging from Asia-Pacific economies that prudent regulation can prove effective.
From Singapore to Sydney to Seoul, regulators have implemented prudential rules that target house-price inflation at the same time as they deliver stimulus to their economies through monetary policy. As the list of countries dropping rates towards zero lengthens, macro-prudential measures, once out of favour in the developed world, are staging a comeback.
