A leading Asian economist says the ongoing euro zone crisis will be "more severe" than the aftermath of the collapse of Lehman Brothers in 2008.
"The weakening of the European economy combined with very slow recovery in the United States will result in a weakening global economy for a rather long time," Asian Development Bank economist Iwan Azis told Korean Joongang Daily.
"The weakening of the European economy combined with very slow recovery in the United States will result in a weakening global economy for a rather long time," says Azis.
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"In 2008, it was only the U.S." "The present crisis, however, is both [affecting the U.S. and Europe]."
"And it's going to have a negative effect on the global economy because whether we like it or not, Asia is closely connected to the U.S. and Europe in trade and finance."
Azis says that, in general, it’s time for Asian stimulus measures, but it will be more difficult now than in 2008 because many countries in Asia, including China, used huge stimulus back then.
“So policy is getting more limited,” Azis says. “But limited doesn’t mean they don’t have it.”
The Wall Street Journal reports that China has said rapid yuan appreciation in the near term is out of the question as it would harm China's economic growth, in one of the strongest responses yet to U.S. pressure for a faster rise in the currency.
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