The Eurozone Crisis: A Perspective from and Impact on Asia

Abstract

This chapter has three objectives: (i) to demonstrate that from Asia’s experience and perspective, in managing a financial crisis it is critically important to distinguish between the proximate and the root causes and to focus on the latter rather than the former, because otherwise the patient may be given the wrong medicine which could worsen the disease; (ii) to apply root cause analysis to recent financial crises and point out the similarities and differences with a focus on the on-going Eurozone crisis; and (iii) to assess the impact of the Eurozone crisis on Asia.