Economists think it would start in South Korea or Taiwan, which would create a domino effect in Southeast Asia and then China. The good news is that Japan, and the BOJ especially, are not known for bold moves. Economists predict that if the BOJ does print money, it will do so gradually. For China, a weaker yen may put less pressure on the renminbi than do its domestic economic problems. Economic growth, trade and foreign investment are expected to slow this year.
Deflation looms as consumers hold onto their money.
Some economists predict Beijing may expand its money supply to boost demand. An increase in China's money supply might be good for the whole region. The region then becomes a buy. Review Publishing Company Limited, Hong Kong. All rights reserved.