MEMBERS POLICY RESPONSE TO SUSTAIN GROWTH AND FACILITATE GLOBAL ADJUSTMENT
MARSOEM, BAMBANG SANTOSO
MASJAR, D. SOLEHUDIN
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The ADB representative presented the first paper on Economic Outlook for South East Asia and Policy Responses, which covers 3 issuesm namely (i) South East Asian EconomicTrends and Outlook, (ii) East Asia's Policy Challenge and Responses and (iii) Invigorating private investment. The ADB concluded that the global economy including East Asian countries remain strong. In the near future , the global economy is forecast to slow but still above the long - term trend rate. The key challenges facing global economy are continued high oil prices, hard landing in China's economy , and adjustment of the US current account deficit. In this regard , the ADB views that there is a need for fiscal consolidation in some countries. Furthemore, higher inflation rates underscore the need for tighter monetary policies. The ADB views that in facing the upward trend of international interest rates and in order to have a smoother adjustment of the global currentaccount imbalances, countries in East Asia would need greater exchange rate flexibility, as this would provide more maneuverability in macroeconomic management. Another issues for sustaining global economic is invigorating private investment.