Hyperinflation poses threat: risk may loom larger than foreign-debt woes

Article Abstract:

Analysts are worried of the possible effects of an even higher inflation rate in Indonesia in the later parts of 1998. Economists predict that the country's 25% inflation will possibly increase to 30% or even 50% due to the further devaluation of the rupiah. The hyperinflation will also negatively affect investments and consumption patterns. The government has targeted only a 20% inflation for 1998, though the level was based on an exchange rate of 5,000 rupiah to 1 US dollar. By the end of January the rupiah was already at the 10,000 plus level to the dollar, making inflation forecast adjustments necessary.

Prices, Indonesia, Asia

---

Hong Kong's dollar dilemma: government faces unpalatable options surrounding the currency peg

Article Abstract:

The Hong Kong government may maintain the Hong Kong dollar's peg to the US dollar, break the peg and float the Hong Kong dollar or dollarize the Hong Kong economy in an effort to strengthen the economy. None of the three alternatives is optimal. According to securities, dollarization may decrease interest rates though not enough to carry significant impact on the economy. On the other hand, discontinuing the peg may allay, to some extent, the burden on asset prices.

Planning, Economic policy, Hong Kong, Monetary policy, Dollar (Hong Kong)

---

Life after the float

Article Abstract:

Economists have differing views regarding Thailand's economic recovery after a nearly 13-year currency flotation. The baht held its value down against foreign currencies and closed at 30.75 baht to the dollar on July 11, 1997. Some economists believe that the long-term benefits of the move will offset the short term damage. The government floated the baht as a move to entice foreign investors into the country.

Thailand, Economic development, Valuation, Floating rate notes, Baht (Thailand)

Similar abstracts:

• Abstracts: Reform of ownership rules in Korea may not trigger foreign money flow. Divisions emerge in the U.S.: Lenders angling for profits may help Seoul
• Abstracts: DEA/AR profit ratios and sensitivity of 100 large U.S. banks. Data transformations in DEA cone ration envelopment approaches for monitoring bank performances
• Abstracts: Hip hop: Acer teams up with American designer to woo buyers. Big.risk at cyberspace
• Abstracts: Bad loans, China exposure threaten Citic Ka Wah stock. Businesspeople have few ways to tap the city's capital
• Abstracts: Bangkok yields to inevitable by loosening baht grip: freeing the Thai currency to market forces, the government aims for economic healing

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.