'If all countries are not parallel, then there must be an oppressed country.'
The International Monetary Fund (IMF) expressed the opinion that central banks in the Asian region need to implement aggressive policy tightening to avoid large debts following the move being encouraged by the world's major banks.
The matter was presented by the director of the IMF's Asia and Pacific Department, Krishna Srinivasan, following the increase in commodity prices and the depreciation of Asian currencies affecting the cost of imports.
In general, the aggressive policy tightening measures by the Federal Reserve (Fed) in bringing inflation to its target level have put pressure on the financial system of Asian countries which can lead to an increase in debt levels.
The wide interest rate differential between the Fed in the United States (US) and Asian countries indirectly triggered a spike in import costs.
As a result, Srinivasan explained the importance of aggressive policy tightening in the Asian region to offset the surge in inflation and rapid rate increases.
In addition, he also underlined that most Asian countries are now the biggest debtors excluding China and Japan where their economic recovery is among the weakest including low inflation.
