In response to the impact of large capital inflows,Asian countries

Name: In response to the impact of large capital inflows,Asian countries
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Asian countries tended to tighten fiscal policy in response to large capital inflows in order to prevent inflation and maintain exchange rate stability. Running large government budget deficits and increasing public debt are not typically a desirable response to capital inflows as they can further exacerbate macroeconomic imbalances.

In Response to the Impact of Large Capital Inflows,Asian Countries