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PacNet #5 – The Asian Contagion: Will it get to Tokyo?

Many economists and political figures in Washington are expressing concern is that the Treasury Department is exacerbating the “moral hazard” problem, which is seen as endemic in global banking. From the perspective of regional analysts, however, the debate over international intervention to contain the spread of the Asian contagion leads to very different line of inquiry. The question most on the minds of Asia-watchers is where is the region’s largest economic power – Japan – in this moment of great financial crisis?