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Riding Asia's 'Great Moderation' era in 2015

High-quality rather than high growth could spell a prolonged period for harvesting equity returns

In Indonesia, Mr Joko has already implemented one round of fuel price hikes in order to reduce energy subsidies, in a shift towards more market- based pricing mechanisms. This will free up the fiscal budget for much-needed investment in economic infrastructure.

SINCE the beginning of 2014, I have been alerting investors to the emergence of the "Great Moderation" dynamic in Asia. This refers to "The Great Moderation", a sustained period of macroeconomic growth and reduced volatility that began in the 1980s in the US, and which has provided an important...