Political Risks Are Rising Around the Globe, Says Matthews Asia’s Kong

The video discusses the impact of geopolitical risks, such as those in Chile, on global investments. It highlights the challenges governments face in implementing austerity measures amid social unrest, with examples from Chile and Ecuador. The need for fiscal stimulus is emphasized, as monetary policy alone is insufficient. The video also explores Korea's economic strategy, contrasting it with Japan's, and discusses the implications of new international accounting standards on Korea's fiscal policy.

What is a major factor contributing to social unrest in countries like Chile?

• Income inequality

• Environmental issues

• High unemployment rates

• Political corruption

Why is fiscal stimulus being emphasized over monetary policy in some countries?

• Fiscal stimulus is more popular politically

• Monetary policy has no limitations

• Fiscal stimulus is easier to implement

• Monetary policy is reaching its limits

Which country is mentioned as having room for further fiscal spending?

• Brazil

• Japan

• Germany

• Australia

What is a concern for South Korea regarding unconventional monetary policy?

• Currency devaluation

• Lack of foreign investment

• Negative spillover effects

• High inflation rates

How might new international accounting standards affect South Korea's government borrowing?

• Reduce government spending

• Increase demand for long-dated government paper

• Increase demand for short-term bonds

• Decrease demand for government bonds