, Columnist
Asia’s Liquidity Squeeze Is the Worst Since 2008
Previous episodes either preceded or coincided with global slowdowns. And it’s only going to get worse.
Foreign intrigue.
Photographer: Luong Thai Linh/Bloomberg
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Liquidity is getting tight in Asia.
Leave aside Japan, where the printing presses are still pumping out yen. In rest of the region, central banks’ supply of currency plus bank reserves has shrunk 7 percent in real terms since the dollar began surging in April. This is the steepest contraction in base money since the 11 percent fall between January and October of 2008.