Asia’s role in the post-crisis global economy (original) (raw)

The Global Financial Crisis and Asia: Implications and Challenges

This book aims to identify and analyze the impact of the 2007–2009 global financial crisis on Asian economies and to assess the short-term and longer-term policy responses to the crisis in terms of their effectiveness and sustainability. The volume highlights that Asian economies have recovered strongly from the crisis, reflecting their aggressive moves to ease monetary and fiscal policy. However, the biggest challenge lies ahead. It asserts that, given that it is unlikely that the US and Europe will be engines of global growth, Asian economies should contribute to global economic adjustment by creating their own growth engines.

Asia’s Multi-Level Response to the Global Financial Crisis

Asia Europe Journal, 2012

While the GFC precipitated stagnation in the United States and throughout most of Europe, Asia escaped largely unscathed (and notably suffered less economic damage than during the Asian financial crises of a decade earlier). In this article, we examine how the GFC has affected Asian states’ attitudes towards and participation in regional and global institutions. The GFC produced a significant disjunction in Asia’s inter-governmental relations in finance and trade at both the regional and global levels, most notably manifested in the multilateralization of the Chiang Mai Initiative, and Asia’s new role in global economic governance courtesy of its representation in the G20. However, substantial continuities are also evident in the divided interests of Asian countries: these not only threaten the effectiveness of regional cooperation but continue to prevent the region from effectively exercising its collective economic weight in global forums.

20 Years after the Asian Financial Crisis

ADB Briefs, 2017

• Twenty years after the Asian financial crisis, Asia stands strong. Yet, Asia should not be complacent, and remain vigilant against a buildup of financial imbalances, ready to act if risks materialize, and proactively address structural weaknesses through broadbased reforms. • Significant challenges remain while new vulnerabilities emerge from the steady rise in dollar-denominated debt, increasing private sector debt, and a pickup in nonperforming loans in some emerging Asian economies. With more pronounced global financial cycles, increasingly interconnected financial institutions and markets are also building the channels to fan global shocks. • Three key lessons are drawn from Asia's crisis experience: (i) maintaining sound macroeconomic fundamentals is a prerequisite for economic and financial resilience; (ii) deepening and broadening financial systems is essential to boost both financial efficiency and resiliency; and (iii) greater regional cooperation efforts are needed to reinforce regional financial safety nets for financial resilience.

The Global Financial Crisis: Impact on Asia and Emerging Consensus

2011

Two full years since the onset of the crisis, policy makers have been putting into practice demand management policies to mitigate the impact of the crisis and sow the seeds for a strong recovery. Asia, while less exposed to the crisis than the G3, has been actively engaged in fiscal and monetary stimulus, supported in some cases by international financial institutions such as ADB. This paper reviews the impact of the crisis on Asia and policy measures introduced by various countries to mitigate the impact. Lessons learned and new insights are also elaborated.

Asia and the Global Crisis: Recovery Prospects and the Future

SSRN Electronic Journal, 2000

The global crisis of 2007-09 affected developing Asia largely through a decline in exports to the developed countries and a slowdown in remittances. This happened very quickly, and by 2009 there were already signs of recovery (except on the employment front). This recovery was led by China's impressive performance, aided by a large stimulus package and easy credit. But China needs to make efforts toward rebalancing its economy. Although private consumption has increased at a fast pace during the last decades, investment has done so at an even faster pace, with the consequence that the share of consumption in total output is very low. The risk is that the country may fall into an underconsumption crisis.

Asia and Global Financial Governance

SSRN Electronic Journal, 2011

Currently, Asia's influence in global financial governance is not consistent with its weight in the world economy. This paper examines the role of Asia in the International Monetary Fund (IMF) and the Group of Twenty (G-20). It looks in particular at how the relationship between East Asian countries and the IMF has evolved since the Asian financial crisis of 1997-98 and outlines how Asian regional arrangements for crisis financing and economic surveillance could constructively interact with the IMF in the future. It also considers ways to enhance the effectiveness of Asian countries in the G-20 process.

The Asian Financial Crisis: What Happened, and What Is to Be Done

1999

We identify the Asian financial crisis to be the result of the instabilities of short-term capital flows, inadequate prudential supervision in the financial markets of the developing countries, mistaken commitments to the fixed exchange rate regime, lack of international coordination in the regulation of international financial markets, absence of an international mechanism for the orderly working out of international debt, and inappropriate "rescue" packages imposed by the IMF. We recommend 30 policy reforms to make the international economy more resilient to financial turmoil, and to reduce the costs of such turmoil. We conclude that there is little particularly 'Asian' about the Asian financial crisis. Even though official Washington, led by the IMF, proclaimed the crisis to be one of Asian capitalism, the more generic character of the crisis became all too clear during 1998, as the crisis spread to Russia, South Africa, and Brazil. Rather than an Asian crisis, ...