ABSTRACT
This chapter analyzes economic conditions in some important Asian countries considering their current economic crisis and ongoing economic reforms. Many Asian countries are moving from labor-intensive manufacturing to capital-intensive industries, boosting companies' debt financing needs, which require bond financing. A fund that could top up loans from the International Monetary Fund would be particularly helpful as most Asian countries are already using Japanese finance quite heavily. Japan's Export-Import Bank would provide guarantees on international bank loans, sovereign bonds, and export credits to East Asian countries. The solution of the Japanese banking crisis will not only stimulate the Japanese economy, but will also provide increasing liquidity to the crisis-affected countries. The Japanese government has started nationalizing banks in Japan that are on the verge of bankruptcy and providing public funds to all banks that need it so as to protect them from collapsing.
