Asia’s Post-Global Financial Crisis Adjustment: A Model-Based Dynamic Scenario Analysis
Masahiro Kawai () and
Asian Development Review, 2010, vol. 27-2, issue 2, 122-151
Using a dynamic global general equilibrium model, the paper assesses the short- and medium-term impacts of the global financial crisis for Asian economies and the implications of post-crisis adjustment in East Asia for the world economy. The analysis suggests that East Asia may not be severely hit permanently by the global financial crisis, and that a worldwide fiscal stimulus could play an important role in stabilizing the global economy in crisis. East Asia’s efforts toward strengthening regional and domestic demand, in conjunction with more flexible exchange rate regimes, will promote more balanced regional growth, facilitating an orderly global rebalancing. However, despite the growing size of emerging East Asia in the global economy, the region’s growth rebalancing has only modest spillover effects on the rest of the world. Emerging East Asia can contribute to global growth, but it alone cannot become the sole engine leading post-crisis growth in the world economy.
JEL-codes: C68 E62 F32 F47 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Working Paper: Asia's Post-Global Financial Crisis Adjustment: A Model-Based Dynamic Scenario Analysis (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:adbadr:2725
Access Statistics for this article
Asian Development Review is currently edited by Shang-Jin Wei
More articles in Asian Development Review from Asian Development Bank Contact information at EDIRC.
Bibliographic data for series maintained by Maria Susan M. Torres ().