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Asian Recession & 2008 Recession

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Why did people believe the difficulties Asian economies were experiencing in 1997-1998 might bring a recessionary gap to the United States?

In dealing with the recession of 2008, why is it important for the Fed and Congress to coordinate monetary and fiscal policy measures?

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People believed that the difficulties Asian economies were experiencing in 1997-98 might bring a recessionary gap to the United States. The financial markets of the Asian Countries and the US are interlinked. A rapid and steep fall in the Asian markets will adversely affect the US markets. Another reason is that US citizens and companies are important investors in the region of Thailand, Indonesia, and South Korea. There are subsidiaries of US companies in these regions and there are investments in securities. Another reason people believed that the problems of Asian countries might bring a recessionary gap to the US is that there was a currency crisis. This was expected to affect US exports, and imports. The value of US dollar was expected to ...

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The Asian and 2008 recession is explained in a structured manner in this response. The answer includes references used.

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Global Economy: Asia-Pacific

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A study of the global economic impact of the 2008-2009 recession on the global economy conducted by the Economic Policy Institute (http://www.epi.org/) has shown that as of January 2010 the United States economy shrunk 5 percent compared to the pre-recession period. At the same time, the Asia-Pacific region grew by 14 percent.

What are the reasons for the decline of the U.S. economy and the growth of Asia-Pacific?

What consequences does this have for the global balance of power?

What do you think should the U.S. Government, businesses and the labor unions do to reverse this trend?

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