Averting the crisis

More than a year into the global financial tsunami, the damage in Asia is substantial but remains manageable. Equity prices plummeted, liquidity shortages and escalating counterparty risk choked money markets, currencies fluctuated sharply and confidence weakened, but no major payment problems or market disruption are evident. However, we are far from the end. The real challenges are yet to come and are likely to be tougher.

Strong actions taken by the authorities of the major