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South Korea, Thailand Warn Over Fallout From Easy Money, Currencies
Reuters | January 30, 2013 | 07:55 PM EST

South Korea warned on Wednesday it might consider a tax on financial transactions and Thailand said it was worried its strong currency would hurt exporters as moves by advanced economies to flood markets with easy money increasingly spill over into other countries.

Government officials in two of the four Asian tiger economies, which fell victim to massive outflows of speculative money in the late 1990s, expressed concerns over the negative impacts of super-loose monetary policy just two weeks before a Group of 20 finance chiefs' meeting in Moscow.

Policymakers in advanced countries, particularly Japan and the United States, have been acting aggressively to print more money and reflate their economies since the global financial crisis.

(Read More: G20 Unlikely to Pressure Japan Over Weakening Yen )

This has had the effect of weakening their currencies while strengthening those of many other countries from South Korea to Mexico, making their exports less competitive, roiling their financial markets and threatening to feed destabilizing asset bubbles.

"The external environment and foreign exchange market movements since the fourth quarter of 2012 have created a considerably worrying situation," South Korean Deputy Finance Minister Choi Jong-ku told a seminar in Seoul.

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