Singapore warns rise in capital outflows may destabilise Asia region

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The Monetary Authority of Singapore's Financial Stability Review, published on Friday, warned the Asia region as a whole could experience a sudden rise in capital outflows as the crisis in Europe escalated.

The report said the multi-speed global economic recovery and renewed search for yield had resulted in strong capital inflows into emerging Asia in the second half of 2010 and the beginning of 2011. It said that in some of the countries that received large capital inflows, policy-makers

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