Asia in the year of the dragon
Monday 23 January 2012 - by Haruhiko Kuroda / Project Syndicate
This is the year of the "Black Water Dragon," an astrological cycle that indicates change, but with a measure of calm, sensibility, and prudence.
Volatility has come to define market behavior, and Asian markets are no exception. Investor sentiment seems driven by daily events rather than longer-term trends.
If the eurozone crisis leads to a sovereign default, contagion could spread to the rest of the world.
In the short term, Asia and other emerging economies could be hit hard as finance dries up, choking off trade and investment flows that coursed through European banks - and hitting American banks that need to shore up capital to cover their European exposure.
Any new crisis would thus hurt global trade and Asia's economic growth.
To read this article in full, please visit our partner site, Project Syndicate, by clicking here.
Copyright: Project Syndicate, 2011. www.project-syndicate.org
|Login||Register||Most read||Most commented|
Will markets in 2012 have a tougher time than 2011?