Former US central bank chief Alan Greenspan said yesterday that global economic imbalances might improve if some high-growth economies allowed their currencies to strengthen.
"World equilibrium is probably better reached by allowing a number of these countries, which are showing extraordinary economic growth and really in many cases twice the growth of the developed nations, and allow currencies to firm," the former US Federal Reserve chairman said in an address to a conference in Seoul sponsored by the Financial Times newspaper.
Greenspan spoke via satellite from the US. He didn't specify the economies by name, but was responding to a question about the accumulation of vast amounts of foreign reserves by Asian countries including China, Japan and South Korea.
"I realize what that does to competitiveness, but that's the way markets work efficiently," Greenspan said. "In other words, to prevent the exchange rates from moving creates all sorts of distortions."
Greenspan, who led the US Federal Reserve from 1987 until his retirement early this year, said he doubted the economies of Asia could formally agree on ways to work together to allow their currencies to strengthen in tandem.
"My judgment would be it's very difficult to get an agreement between a number of major countries who have their own domestic political adjustments to make and find that there is a single adjustment on which all could agree," he said.
Greenspan said that there was a significant amount of liquidity worldwide, but added that the situation wasn't permanent and asset prices would eventually fall.
Beijing’s continued provocations in the Taiwan Strait reveal its intention to unilaterally change the “status quo” in the area, the US Department of State said on Saturday, calling for a peaceful resolution to cross-strait issues. The Coast Guard Administration (CGA) reported that four China Coast Guard patrol vessels entered restricted and prohibited waters near Kinmen County on Friday and again on Saturday. A State Department spokesperson said that Washington was aware of the incidents, and urged all parties to exercise restraint and refrain from unilaterally changing the “status quo.” “Maintaining peace and stability across the Taiwan Strait is in line with our [the
EXTENDED RANGE: Hsiung Sheng missiles, 100 of which might be deployed by the end of the year, could reach Chinese command posts and airport runways, a source said A NT$16.9 billion (US$534.93 million) project to upgrade the military’s missile defense systems would be completed this year, allowing the deployment of at least 100 long-range Hsiung Sheng missiles and providing more deterrence against China, military sources said on Saturday. Hsiung Sheng missiles are an extended-range version of the Hsiung Feng IIE (HF-2E) surface-to-surface cruise missile, and are believed to have a range of up to 1,200km, which would allow them to hit targets well inside China. They went into mass production in 2022, the sources said. The project is part of a special budget for the Ministry of National Defense aimed at
READY TO WORK: Taiwan is eager to cooperate and is hopeful that like-minded states will continue to advocate for its inclusion in regional organizations, Lai said Maintaining the “status quo” in the Taiwan Strait, and peace and stability in the Indo-Pacific region must be a top priority, president-elect William Lai (賴清德) said yesterday after meeting with a delegation of US academics. Leaders of the G7, US President Joe Biden and other international heads of state have voiced concerns about the situation in the Strait, as stability in the region is necessary for a safe, peaceful and prosperous world, Lai said. The vice president, who is to be inaugurated in May, welcomed the delegation and thanked them for their support for Taiwan and issues concerning the Strait. The international community
COOPERATION: Two crewmembers from a Chinese fishing boat that sank off Kinmen were rescued, two were found dead and another two were still missing at press time The Coast Guard Administration (CGA) was yesterday working with Chinese rescuers to find two missing crewmembers from a Chinese fishing boat that sank southwest of Kinmen County yesterday, killing two crew. The joint operation managed to rescue two of the boat’s six crewmembers, but two were already dead when they were pulled from the water, the agency said in a statement. Rescuers are still searching for two others from the Min Long Yu 61222, a boat registered in China’s Fujian Province that capsized and sank 1.03 nautical miles (1.9km) southwest of Dongding Island (東碇), it added. CGA Director-General Chou Mei-wu (周美伍) told a