Let poverty in Taiwan by china

Taipei Times - archives: "In recent weeks, governments including Singapore, Hong Kong, South Korea and India have adopted measures to prevent their domestic property markets from presenting bubble symptoms.

Experience suggests, however, that the limits of those measures will soon be reached, and that interest rate hikes will be the next step. A key question for central banks is how quickly they should act.

One concern is that raising rates too early might stall economic recovery in those Asian economies where signs of sustainable growth are yet to emerge.

Another concern is that, as risk appetite begins to build in Asia along with the rebounding economy, a quick rate hike would likely boost the so-called “carry trade” — in which investors borrow from countries with ultra-low interest rates and invest in countries with higher rates — thus aggravating what we have already seen in Asia with price surges in equities, real estate and other assets."