The Impact of the Financial Crisis on Emerging Asia

47 Pages Posted: 5 Nov 2009 Last revised: 28 Jan 2011

See all articles by Morris Goldstein

Morris Goldstein

Peter G. Peterson Institute for International Economics

Daniel Xie

Peter G. Peterson Institute for International Economics

Date Written: October 1, 2009

Abstract

This paper analyzes how the global financial crisis has impacted emerging Asia and identifies key characteristics that have made these economies more or less vulnerable to a transmission of crises from the advanced economies. After reviewing how economic outcomes in emerging Asia have evolved since the crisis began in the summer of 2007, Morris Goldstein and Daniel Xie review several studies of the effect of financial stress and/or growth slowdown in advanced economies on emerging Asia. They then discuss how emerging Asia is "different" in ways that matter for the contagion of crises, with the emphasis on currency and maturity mismatches, the nature of the region's foreign trade links (product composition, the geographic pattern of trade, and the degree of net export-led growth), financial market integration with the advanced economies, and the scope for implementing countercyclical monetary and fiscal stimulus.

Keywords: financial crisis, emerging Asia, crisis vulnerability

JEL Classification: F15, F31, F34, F37, F41, F43

Suggested Citation

Goldstein, Morris and Xie, Daniel, The Impact of the Financial Crisis on Emerging Asia (October 1, 2009). Peterson Institute for International Economics Working Paper No. 09-11, Available at SSRN: https://ssrn.com/abstract=1499875 or http://dx.doi.org/10.2139/ssrn.1499875

Morris Goldstein (Contact Author)

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036-1903
United States

Daniel Xie

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

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