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Opinion

South Korea's quantitative easing would be road to nowhere

Japan shows how QE discourages deep corporate reform

| South Korea

As South Korea's economy slows and politicians dither, investors are buzzing about the obvious next step: quantitative easing -- aggressive purchases of bonds and corporate assets to turbocharge demand by the nation's central bank.

It is obvious because QE has become the default for stuttering economies since the 2008-09 global crisis, and clearly Asia's fourth-biggest economy is in need of a policy pick-me-up. Growth averaged just 1.9% between January and September year-on-year, down from a 2.6% pace in the comparable 2018 period.

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