Falling Inflation Rates in Asian Economies - Essay Example

By taking into concern the above-stated economic issue, the journal opined that the nations including China. Korea as well as India may take the initiative of lessening tax rates for addressing and mitigating the above-stated issues to a considerable extent. Based on the journal, which mainly depicted one of the problems faced by the economies across Asia concerning diminishing inflation rates, it can be affirmed that the above nations must remain quite vigilant in keeping the inflation rates under greater control. This might aid in attracting the investors and also the other stakeholders to take necessary and appropriate measures about solving such a crucial economic issue (Wright, “Economies across Asia Face Falling Inflation Rates”).

With this concern, the essay intends to address the aforesaid economic issue by determining its impact on the economies and identifying the measures to address and mitigate such a crucial economic issue.

Among Asian countries, Japan took the initiative of lessening consumer expenditures and making substantial investments for mitigating the problem of dipping inflation rates. In recent times, Japan experienced the crucial concern of rising prices in the form of monetary as well as fiscal stimulus. In this particular scenario, the economists anticipate that inflation will fall below certain rates in the future. Apart from Japan, the inflation rate in Indonesia can also be noticed below 8 % at the end of 2013 and economists expect that the inflation rate will be higher in subsequent years. This might be due to the reasons of an increased level of globalization, gaining momentum of internationalization, and most importantly increased level of customers’ expenditures among others (Wright, “Economies across Asia Face Falling Inflation Rates”).

As per the article presented in Wall Street Journal, it can be ascertained that the respective governments of Asia have mainly relied on the debts for making higher financial growth after the US economy faced economic turmoil in 2008. In response, certain measures or strategies may support the Asian economies to cope with the adverse situation of falling inflation rates to a certain extent. In this context, such measures or strategies can be determined as lessening nominal interest rates, keeping a close watch on the customers’ spending as well as purchasing power, and making extensive changes in bank behaviors among others (Wright, “Economies across Asia Face Falling Inflation Rates”).