Korea Considers Capital Controls

In a move that appears to bolster my belief that the boom in the emerging market economies and stock markets are due more to the US Federal Reserve's quantitative easing rather than improvements in the global macroeconomic fundamentals, South Korea is reportedly considering measures to curb capital inflows, as reported by the Chinese edition of FT.

韩国透露了实施一系列新的资本管制措施以应对投资流动激增的可能性。

这意味着亚洲第四大经济体可能采取与巴西、泰国和印尼相似的防御性政策。

The full article can be found here.

And as a further sign that the underlying structural problems in Europe has not been addressed, let alone resolved, budget talks in Portugal aimed at implementing austerity measures to satisfy the bond market have made little headway so far.

Now that the US Fed is expected to announce a new round of quantitative easing, we need to watch to see what impact that policy will have on stock markets. We live in very interesting times indeed.