Tuesday, February 5, 2013

The Eurozone Crisis and Its Impact on Asia

This RSIS Working Paper issue no. 254 dated 6 February 2013 by Pradumna B Rana and Michael Blomenhofer entitled  The Eurozone Crisis and Its Impact on Asia can be accessed by clicking: http://www.rsis.edu.sg/publications/workingpapers/wp254.pdf



No. 254 dated 6 February 2013

The Eurozone Crisis and Its Impact on Asia

By Pradumna B. Rana and Michael Blomenhofer



This paper uses root cause analysis to identify the root causes of the eurozone crisis and compares it with the causes of the Latin American, the Asian, and the sub-prime mortgage crisis in the US. Similarities and differences are identified. The paper argues that the root causes of the eurozone crisis were overleveraging, and the flaws in the design of the economic and monetary union. Although the crisis began over three years ago, it is only recently (July 2012) that actions have been initiated to fix the design flaws and deepen integration. Implementing these reforms will require strong political will on the part of member countries as they involve handing over authority to supranational institutions. Treaty changes may also be required. Progress is, therefore, expected to be slow. Whether these efforts to move from the economic and monetary union round one (EMU 1) to EMU 2, can save the euro is still an open question. The paper also examines the various channels through which the eurozone crisis has impacted Asia and concludes that the overall adverse impacts have been manageable so far, but cautions that it could be more serious in the future.

Click on the following link to download the working paper


http://www.rsis.edu.sg/publications/workingpapers/wp254.pdf

Bio

Dr Pradumna B. Rana is Associate Professor of International Political Economy (IPE) at the S. Rajaratnam School of International Studies (RSIS) of the Nanyang Technological University (NTU). He is also the Coordinator of the Master of Science in IPE programme and the Coordinator of Economic Multilateralism and Regionalism Studies at RSIS’ Centre for Multilateralism Studies. Previously, he was the Senior Director of the Asian Development Bank’s (ADB’s) Office of Regional Economic Integration, which spearheaded the ADB’s support for Asian economic integration. He obtained his PhD from Vanderbilt University where he was a Fulbright Scholar and a Masters in Economics from Michigan State University and Tribhuvan University. He has authored/edited 15 books, and published over 50 articles in international scholarly journals. Most recently, he edited a book entitled The Renaissance of Asia: Evolving Economic Relations between South Asia and East Asia (World Scientific Publishers). He also co-edited books on Pan-Asian Integration: Linking East and South Asia (Palgrave Macmillan) and National Strategies for Regional Integration: South and East Asian Case Studies (Anthem Press, UK).

Michael Blomenhofer is a Master’s student in the International Political Economy programme at the S. Rajaratnam School of International Studies (RSIS). Being part of the newly established Warwick-NTU double degree programme, he was awarded a student research assistant scholarship for his stint at RSIS. Michael obtained his Bachelor’s degree in European Studies from Maastricht University in 2011, and his research interests include the causes of the Eurozone crisis and its consequences for European integration, the international political economy of risk, as well as International Relations theory.

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