Similarities are as follows: A common backdrop to both crises was abundant liquidity and excessive, imprudent credit expansion There was also a search for yield by lenders, and the abundance of liquidity tended to lead to lax credit standards Another sign of trouble prior to both crises was the rapid increases in property asset prices Another sign of trouble prior to both crises was the rapid increases in property asset prices There were also classic cases of moral hazard, because lenders and borrowers faced little if any risk from their activities However, despite the similarities the policy responses weer different: In the subprime crisis, major central banks have intervened aggressively to provide liquidity to contain disruptions and contagion in financial markets.
Asian economies Summary In analyzing the potential future path of China and India, based on the path taken by other economies in the region, I will very quickly gloss over the similarities between China and its Southeast Asian neighbors.
The idea is that I will focus on the key differences between Southeast Asian economies on one hand, and China and India on the other.
While it is important to try and tease out lessons from the experiences of the successful Southeast Asian economies that emerged before China and India, their experiences have altered the landscape in which China and India operate.
Most of the challenges currently being faced by China and India were not necessarily the same issues faced by the fast growing economies of Southeast Asia, at the same stage in their development.
To that end, I will lay out the country specific issues facing China's and India's economic growth. I will then highlight the effect of unpredictable 'bumps in the road'.
By their very nature, we are unable to begin to understand what they could be and how they could affect future economic development. I will conclude that the path facing China and India up until this point has been similar to that faced by the successful economies of Southeast Asian economies.
However, I will also argue that the more important challenges facing China's and India's economic growth are unique and so insights from the Southeast Asian economies may not be appropriate China China and its Southeast Asian neighbors - the story so far China has grown more rapidly, and for a longer period of time, than most of the successful Southeast Asian neighbors.
With an average annual GDP growth rate of 9. There are numerous similarities between China and its Southeast Asian neighbors.
For example, China's economic growth has been the result of a number of strategies including, pursuing an export-led strategy aided by a low currency as well as competitive labor costs.
China's growth also depends on a domestic-led fixed investment strategy with the state sector playing a dominant role.
However, in contrast, the key to success in some of those Southeast Asian economies such as Taiwan and South Korea was to lay the foundations private enterprise and capitalist activity.
China on the other hand, is pursuing a somewhat different approach by crowding out private industry and replacing it. In other words, the key difference between China's economy and its successful Southeast Asian neighbors is the extent of the role of the state.
China-specific issues Declining population growth rates and ageing Declining population growth rates and ageing have generally been a problem for industrialized economies. China's population has grown at an average annual rate of 2.
Bythe population growth rate has declined to about 0. In addition to this decline in population growth rates, the elderly population has been growing faster than the average of the world and Asia, since The combined effect is that over time there will be fewer young people replacing the elderly who exit the labor force, and this will become a credible threat to the sustainability of China's rapid economic growth.
The reason behind this trend lies in increased life expectancy and the one-child policy. The increase in life expectancy is partly due to the effect of economic development.
This implies that every 10 working people will have to support up to seven dependents incompared to about fewer four today. Interestingly, this rise in dependency ratio is expected to occur at lower levels of per capita income, than in other countries.
The dependency ratios in most other countries, eg.The Great Depression of earlier times and the financial crisis of the current times from will be studied in depth in the following research work in order to bring out the similarities and differences the United States faced during these two times of financial turmoil.
The catchphrases may be different, but there are many similarities between the Asian financial crisis and today's Crisis anniversaries are usually occasions to draw lessons from the past—and the 10th anniversary of the Asian financial crisis last year was no different.
Journal of Asian Economics. Volume 21, Issue 3, June , Pages there has been an intensive discussion about the similarities and differences between the latest crisis and the past episodes.
Some commentators, especially in the media, argue that the latest crisis was different. The global financial crisis has resulted in. Similarities Differences Between Asian And Global Financial Crisis Economics Essay. Print Reference this. Disclaimer: Then both of the crises always give global impact in economics to all countries in the world, and as financial crisis all financial market will be affected.
The differences are just the volume of the impact and how they. Global Financial Crises: Differences, Impacts and Implications The / credit crunch and the subsequent Euro zone crisis have similarities with the great depression such as the downturn of the economic market. The global economic and financial crisis which started in / is a lasting crisis of a spatial and political economy - The Geographies of the Global Financial Crisis Essay introduction.
Geographer’s interest is focused on the engagement of the political economy in the past three decades that might have contributed to this situation.