Has the Asian crises triggered a global meltdown threatening world economies?
There is absolutely no reason to term the Asian crises as catalyst of a global meltdown. This is because Asian economies are relatively small and are noteworthy not for their size but for their dizzying growth rates. Also, these countries sucked in a high amount of imports and so got a lot of attention from Japan mainly and then also by the US. As for its impact on the global economy, it will be minimal as funds involved were relatively small. As a second order impact, however, it is the psychological setback which is leading to a further deterioration of the crises. History says that both bubbles and bursts spread like a contagion and that is what is happening in Asia. Asian countries have pointed a lot of fingers at the free-market system, blaming it for the crises. Will we see a total rolling back of theAmerican market model in Asia? One must understand that the present crisis is not a direct result of a free-market economy. It is a combination of a huge pool of money being poured i
