Economic Growth In East Asia Essay

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Introduction of Growth in East Asia

For the past 30 years, the remarkable growth of many economies in East Asia has surprised the economics profession and has evoked a torrent of books and articles which attempts in explaining on the successful economic growth in the region Singapore, Korea and Taiwan. The land of Asia has become richer faster in 1960 compared to any other region of the world. Both western and eastern part of Asia grew at the same rate, however, half of eastern country such as China, Hong Kong, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Tai and Thailand has given outstanding performance. This topic will elaborate on what the governments in Asia countries have
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Hence, with this policy, it can sustain the economic growth by influencing aggregate demand or spending in the economy such as opening market operations, changing the bank rate, changing the cash reserve ratio and undertaking selective credit controls. (Guru, 2015)

With the implementation of monetary policy, Southeast Asian central banks have succeeded in controlling inflation from their high levels in 1970s to low levels in 1980s, except in the Philippines. As depicted in table 3 below, the country has experienced inflationary hits when its currency value against US dollar has decreased from 7.10 pesos during the year 1971 to 1980 to 17.10 pesos during the 1981 to 1990 period. Evidently, the government policies that were implemented have been effective in keeping the inflation under control and they help to boost the economic growth by stabilizing the prices in Southeast Asia. Apart from Singapore, Southeast Asian economies have adopted monetary policies. It is effective because when money supply growth rate has been reduced, it leads to an increase in interest rate that caused investment and durable goods that are sensitive to interest to decrease. As a result, when total demand decreases and supply remains the same, the prices of goods and services, and thus inflation rate decreases as well. (Columbus,

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