Taking the Helm: A Policy Brief on a Response to the Global Economic Crisis

Asian Development Bank

Apr 2009 · Asian Development Bank

About this ebook

The global financial crisis quickly evolved into a full blown economic crisis that has hit the Pacific. The looming impacts look to be larger than expected 6 months ago, are unfolding rapidly, and are likely to be felt over 2009 and into 2010. Even if the global economy picks up in the second half of 2010, as the most recent forecasts suggest, it may take until 2011 for the Pacific economies to fully recover. This policy brief looks at the challenges created by the global economic crisis and discusses policy options to mitigate its impacts. Should monetary policy be relaxed? Is a fiscal stimulus appropriate? What would a fiscal stimulus look like, and how long should one last? What can be learnt from the actions of neighboring economies? These are the sort of pragmatic considerations that the region's economic decision makers are facing. This policy brief tries to help decision makers "take the helm" in finding a way through these difficult economic times.

About the author

About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to approximately two-thirds of the world’s poor: 1.6 billion people who live on less than $2 a day, with 733 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.