Capital controls to stop asset bubbles

Asian economies may need to turn to capital controls as quantitative easing by the U.S. threatens to spur asset bubbles in the region’s stock, currency and property markets, the World Bank said.

Any curbs should be “targeted,” temporary and tailored to address specific problems, Sri Mulyani Indrawati, a World Bank managing director, said in an interview. This could include countries tying up funds for as long as a year to help limit hot-money, she said.

http://www.bloomberg.com/news/2010-11-08/world-bank-says-asia-may-need-capital-controls-to-curb-fed-created-bubbles.html