Even as Asian countries appear to be the first to escape the economic ravages of coronavirus, activity is still below normal.
But money supply growth is a notable exception. Growth in the M2 measure of money supply—that’s all cash in circulation plus savings instruments like money-market funds—is nearly 2 standard deviations above the five-year average, according to
strategists Mallika Sachdeva and Bryant Xu.
There isn’t just one reason for it. Large fiscal transfers in the form of welfare cash handouts and income support, in Thailand and Singapore for example, have boosted deposits, they point out.
Credit guarantees by governments to banks, in India and Malaysia for example, have encouraged loans to small- and medium-size businesses.
And central banks across the region have been purchasing debt, both government securities