Monetary Policy Can Help Ease Pain, Can't Take It Away: Natixis

The transcript discusses the economic conditions in Korea and Vietnam, highlighting Korea's surplus with China and the challenges it faces due to an aging population and narrowing surplus. Vietnam's economic growth is attributed to its wage and tariff cost advantages, along with trade liberalization policies. The global export trends are examined, noting the structural challenges faced by Asian exporters. The role of monetary and fiscal policies in managing economic challenges in Asia is also explored, with a focus on Korea's need for fiscal policy to boost competitiveness.

What is a key factor contributing to Korea's trade surplus with China?

• High demand for Korean automobiles

• Surplus in high-tech exports

• Korea's agricultural exports

• Tourism from China

What advantage does Vietnam have that supports its strong export performance?

• Advanced technology sector

• Large oil reserves

• Low wage and tariff costs

• High domestic consumption

What has been a significant driver for the diversification of supply chains in Asia?

• Rising labor costs in China and Korea

• Increased demand for luxury goods

• Expansion of the agricultural sector

• Growth in the tourism industry

How are Asian exporters expected to perform in the near future?

• They will experience rapid growth

• They will maintain current levels

• They will face structural challenges

• They will shift focus to domestic markets

What is a limitation of monetary policy in addressing economic challenges?

• It can only ease but not eliminate economic pain

• It increases government debt

• It leads to high inflation

• It causes currency devaluation

What does Korea need to improve its economic competitiveness?

• Higher interest rates

• More fiscal policy support

• Increased tourism

• Stronger currency

What has been the impact of the Korean won's depreciation?

• Increased import costs

• Boosted export competitiveness

• Improved domestic consumption

• Reduced foreign investment