World Bank2013-07-312013-07-312009-04https://hdl.handle.net/10986/14684Developing East Asia is battling the forces of global recession. The impact of the crisis in the advanced countries was transmitted to the economies of the region with unusual speed. In the region, the initial global financial turbulence was marked by sudden reversals of capital flows in the middle-income economies, rapidly declining equity market prices, a sharp increase in the price of external private capital, a shortage of dollar liquidity, and in some cases, a depreciating currency. Now with aggregate global demand falling precipitously, region-wide declines in exports and industrial production are triggering widespread factory closures, rising unemployment, and lower real wages, with disproportionate effects on the poor and near-poor. Authorities in many countries are implementing social programs and cash transfers to assist those most in need. Where possible, policymakers have responded quickly with expansionary monetary and fiscal policies, including fiscal stimulus packages, although in most cases these measures will only mitigate, not overcome, the contraction forces operating on their economies.en-USCC BY 3.0 IGOAccountingAccounting Standardsarrearsavailability of creditbalance of paymentsbalance sheetsbank depositsbank lendingbank policybank portfoliosbanking crisesbanking sectorsbanking systemsBanksbeneficiariesbondbondsborrowingcalculationscapital accountCapital flowscapital goodscapital investmentscapital marketscash transfercash transfersCentral Bankcentral bankscentral government financingcollateralcommercial bankcommercial bank assetscommercial bankscommoditiesCommoditycommodity priceCommodity pricescommunity developmentcontributioncontributionscorporate bondscredit agenciescredit availabilitycredit expansioncredit growthcredit guaranteescredit increasecredit linescreditscrisis managementcurrencyCurrency depreciationcurrency depreciationscurrent accountcurrent account deficitcurrent accountsdebtdebt burdensdebt issuancedebt levelsdebt marketsdebt securitiesdebt sustainabilitydebtorsdebtsDepositdepositsdepreciationdepreciationsdeveloping countryDevelopment BankDirect Investmentdiversificationdomestic banksdomestic consumptiondomestic debtdomestic liquiditydomestic marketsearningseconomic activityEconomic Managementemerging marketsequipmentequitiesequity investmentsequity marketexchange rateexchange ratesexpenditureexport growthexporterExportersexternal debtexternal shocksfamily healthFDICFederal Deposit InsuranceFederal Deposit Insurance CorporationFinancial Crisesfinancial crisisfinancial institutionsfinancial marketsfinancial regulatorsFinancial SectorFinancial Sector Developmentfinancial systemsfiscal deficitfiscal deficitsfiscal policiesfiscal policyfixed assetsforeign bankforeign banksforeign currencyForeign Direct Investmentforeign exchangeforeign exchange reservesforeign investmentforeign investorsglobal economyglobal financeGlobal tradeglobalizationGovernance issuesgovernment bankgovernment budgetgovernment debtgovernment interventionGross Domestic ProductHousehold Incomehousehold wealthhuman capitalincomeincome growthincome taxincome taxesinflationInsuranceinterest ratesinternational banksinternational financial crisisinternational tradeinventoriesinvestingInvestment Bankinvestment programjob losseslabor forcelabor marketlabor marketslarge firmsletters of creditliquidityliving standardsloanloan portfoliosloan qualitylocal bankslocal currencylocal governmentslow incomeLow-incomemacroeconomic stabilitymark-to-marketmark-to-market accountingmarket interest ratesmarket pricesmarket sharematuritymedium enterprisesMonetary authoritiesmonetary authorityMonetary FundNonperforming Loansoil pricespersonal incomepolicy responsepolicy responsesportfolioportfolio riskspoverty alleviationpoverty rateprice changesprincipal paymentsprivate capitalprivate financeproductivityproperty taxprosperitypublic expenditurespublic housingpublic investmentpublic savingspurchasesreal estaterecessionrecessionsregulatory forbearanceremittanceremittancesRepaymentsresearch assistanceresumeresumesreturnrisk aversionsafety netsafety netssalarysalessavingssecuritiesshare pricesocial protectionsophisticated consumersound financial managementsupervisory authoritiesswapstax ratetax ratestelecommunicationstrade credittrade creditstrade financetrade financingTrade protectiontrade regimestrade unionstradingunemployedunemploymentunemployment benefitswagewagesworking capitalworld marketsWorld Bank10.1596/14684