British debate on economic policy is getting nowhere. The coalition government keeps repeating that it has to cut spending in order to cut deficits, no matter what. The opposition has been at pains to explain … that trying to cut deficits by cutting spending in a stagnant economy is a largely self-defeating exercise, as it reduces growth and thus tax revenue. It is sticking to its plan A because spending cuts are not about deficits but about rolling back the welfare state.
Please note when this article was published. Things have changed since then. The United States financial crisis has reverberated around the world. That is to say, everything, everywhere. Nonetheless, some countries are faring better than others in this stage of the crisis.
While Spaniards offer banks their house keys, Malaysians shrug. Thailand sighs with relief at its sizable reserves, and Armenia finally thanks the heavens above for its obscurity. China I was surprised to learn that China may not be dramatically affected by the United States financial crisis.
As it turns out, we in the US rely far more heavily on China than she does on us. In addition, the United States gobbles up the majority of Chinese-made goods, meaning a decrease in consumer demand here will make for a chilly Chinese export market.
However, China is not solely dependent on the United States for financial stability.
A host of new trade agreements mean China has a number of potential suitors waiting for vast quantities of goods. Domestic demand is also on the up-and-up. Though the country will feel the international slump, its banking system is probably safe. Its high domestic demandhuge pile of capital, and numerous other major trading partners will counter the effects of US contagion.
China would be badly hurt by a downturn in export demand from the United States and Europe.
It may yet be seriously affected. They can rely more on domestic demand and demand from less-affected countries, such as Brazil. Brazil Latin American economies have boomed over the past few years. Brazil, unlike some of its neighbors, stabilized its domestic economy while positioning itself for increased foreign investment.
Brazil is positioned to take advantage of trade agreements and foreign direct investment from India and Chinatwo economies at the top of the world ladder.
Therefore, any economic slowdown it feels will be a secondary result of global patterns. No shocks have occurred in the country itself. High exposure to the EU and foreign direct investment subject Romania to the general effects of the coming global recession.
The country remains a hot FDI destination for European companies looking for a good deal. Foreigners affected directly by the US financial crisis may have outstanding loans in Thailand. North Korea Although the country has recently enjoyed burgeoning trade ties with South Korea and China, both vulnerable to the US financial crisis, North Korea remains isolated enough to limp through the financial crisis relatively unscathed.
No stranger to famines and subsistence farming, people living in this brittle Communist relic may lose hope as foreign direct investors from affected countries stall capital inflows.
One of those sectors is oil—and China is one of its biggest trading partners. A fortuitous arrangement for all. Iran trades a lot with Europe, which is moldering under the financial crisis. Iran does not trade with the United States.
It does, however, provide petroleum to oil-hungry China, a business that should float the country for at least another decade.
Malaysia This Southeast Asian country hosts a number of multinational manufacturing facilities.The Asian Financial Crisis: Origins, Implications, and Solutions - Kindle edition by William C. Hunter, George G.
Kaufman, Thomas H. Krueger. Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks, note taking and highlighting while reading The Asian Financial Crisis: Origins, Implications, and rutadeltambor.comcturer: Springer.
The Asian Financial Crisis Explained. Before the Asian Financial Crisis, Asian countries such as South Korea, Singapore, Taiwan and Hong Kong experienced rapid growth and was often referred as the Asian Tiger Economies.
The Asian financial crisis has been the biggest test for the IMF since the Latin American debt crisis of the s, and perhaps the biggest test since the institution was founded in . The Asian financial crisis, also called the "Asian Contagion," was a sequence of currency devaluations and other events that began in the summer of and spread through many Asian markets.
The Four Asian Tigers, Four Asian Dragons or Four Little Dragons, are the economies of Hong Kong, Singapore, South Korea and Taiwan, Asian financial crisis. The Tiger economies experienced a setback in the Asian financial crisis.
On July 2, , Thailand devalued its currency relative to the US dollar. This development, which followed months of speculative pressures that had substantially depleted Thailand’s official foreign exchange reserves, marked the beginning of a deep financial crisis across much of East Asia.