The Fed has decided to reduce its monthly asset purchases, potentially triggering outflows from Asia once again but the region is much better prepared to withstand the turmoil this time round.
Markets have over-reacted to the taper and under-estimated the persistence of low inflation, says Ethan Harris, co-head of global economics at BofA Merrill.
Chi Lo, regional head of research (NE Asia), Standard Chartered Bank Global Markets, Hong Kong, explains why Asia will escape another financial crisis.