Balancing act for post-crisis era
The global economy has shown signs of shaking off the prolonged downturn and taking a turn for the better following a raft of stimulus packages unveiled by various governments over the past year.
The US, Japanese and European economies, which staggered under the weight of the worst global financial crisis in decades, have regained ground. Meanwhile, some emerging economies, especially China and India, have enjoyed comparatively rapid economic growth.
However, the robust price rebound in the capital and real estate markets and bulk commodities around the world, especially in emerging markets, has caused widespread concerns over new property bubbles. Against this backdrop, some countries, such as Israel, Australia and Norway, have chosen to raise interest rates to mitigate growing inflation pressures. Such policy revisions have engendered deep concerns over whether other countries will follow suit and exit from their easy monetary polices.