GLOBAL CRISES, FISCAL IMBALANCES AND GLOBAL INSTABILITY: INTERESTS AND REACTIONS OF ASIAN ECONOMIES
This paper concerns the impact of global crises in 2007-9 on Asian economies. Before addressing that issue, however, the first three sections argue that what is often abbreviated to GFC included three distinct crises: 1. a financial sector crisis, which was not global. The North Atlantic financial c...
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Text |
| Language: | English |
| Published: |
2011
|
| Subjects: | |
| Online Access: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.365.2473 http://economics.adelaide.edu.au/research/papers/doc/wp2011-33.pdf |
| Summary: | This paper concerns the impact of global crises in 2007-9 on Asian economies. Before addressing that issue, however, the first three sections argue that what is often abbreviated to GFC included three distinct crises: 1. a financial sector crisis, which was not global. The North Atlantic financial crisis of 2007-8 hit some small economies (Iceland, Ireland), but the big news was the USA and UK and to a lesser degree some other EU members. 2. recession in the USA and UK triggered a global economic crisis in 2008-9 3. public finance crises resulted from large bail-out or stimulus packages exacerbated by falling taxes due to recession (as in Ireland, USA, UK), or to some extent coincidentally (e.g. Greece due to culmination of budget deficits fuelled by cheap debt since joining the euro). If central banks are committed to low inflation, then increased budget deficits mean larger public debts and potential sovereign debt crises. An important distinction between the first two types of crises is that the effects of a financial crisis are much longer lasting than those of an economic crisis triggered by |
|---|