Asian crisis offers policymakers a chance to promote fundamentals

Economic news for the last three months has been an unmitigated disaster and Asian economies did not...

Economic news for the last three months has been an unmitigated disaster and Asian economies did not spare market watchers. Taiwanese exports falling by another 40% in January, South Korean GDP shrinking 5.6% in Q4 2008 and declining currencies have sent economists back to the drawing board to revise their outlook. All eyes are focussed on China, where optimism emerges from the unrestrained monetary and fiscal firepower the command economy has started to put to work. On top of the $588bn stimulus plan and flood of credit, the latest multi-billion deals struck with commodity-rich countries...