Of the many reasons why Asia (outside of Japan) weathered the Great Recession more ably than other parts of the world, one of the most important was the fact that the region never experienced a financial crisis.
After instant and seemingly coordinated fanfare in Europe
and the United States, the proposal for a European Union-US free-trade area has
been generating little media attention. There are three reasons for this, and
all three highlight broader constraints on good national economic policymaking
and productive cross-border coordination.
Economic turmoil in the US and Europe is helping to
accelerate a deeper, long term development. After three centuries of economic
dominance, the west is about to be eclipsed by a rising Asian
power: China. Not only may the Chinese economy soon be larger than
America’s – if measured in purchasing power – but the renminbi could displace
the dollar as the premier, reserve currency within the next decade or soon