Asia-Pacific perspectives on the global financial crisis 2007-2009

We consider recent events in financial markets and the subsequent responses by monetary and fiscal authorities, which are impressive for their scale, innovation and flexibility in the face of sharply deteriorating circumstances. Internationally, the economic malaise brought perverse responses not least being the apparent quest for higher capital adequacy requirements than was thought necessary before the downturn. Where possible the uniqueness of the responses by authorities in the Asia-Pacific region is highlighted. Other features impeding recovery cannot be dealt with immediately. Among these, the most important is the valuation procedures associated with accounting rules.