The euro zone crisis could have a more severe impact than the 2008 crash, according to a leading economist from the Asia Development Bank.
Iwan Azis told Korea JoonAng Daily: “The impact can be more severe than in 2008. At least for two reasons. The first reason is that in 2008, only the U.S. was in trouble. But now, it’s also Europe. The second reason is that many countries in Asia have already used their weapons in 2008 to counter the pressure by bringing in stimulus policies.”
Azis said Asian economies should prepare new stimulus measures, even if they will have less effect than in 2008. He also recommended an international agreement to tax cross-border currency transactions in order to reduce volatility.