Contagion Revisited: Are Europe’s Ongoing Debt Woes a Problem for Asia?
1 The economic news out of Europe continues to be one step forward and two steps back. In September 2012, the head of the European Central Bank announced a programme for purchasing the sovereign debt of weak euro zone nations, creating some cautious optimism. “The European Central Bank has begun to take more control and prospects for the euro zone have improved, although significant challenges remain,” says Robin Goodchild, international director for LaSalle Investment Management. But in late November 2012, the Organisation for Economic Co-operation and Development warned the world economy is at risk of contracting if the euro zone and United States fail to resolve their fiscal problems. And a recent article in Fortune declares, “The continued bailouts are just buying time. Even economists who dr