Washington Report, 2009-07

Abstract

The U.S. Federal Reserve anticipates that the American economy will begin to improve later this year. Experts also foresee an upturn in China’s economy by the year’s end, which, in turn, may help to pull up other Asian economies. But the outlook for a sustained recovery is uncertain unless economies on both sides of the Pacific remained focused on rectifying the underlying imbalances that have fueled the crisis, says Dr. Eswar Prasad of Cornell University and The Brookings Institution. He urges Asia Pacific economies not to be tempted by stop-gap solutions, but instead to undertake politically difficult yet essential reforms aimed at re-balancing growth. Dr. Prasad delivered these remarks at the 18th General Meeting of the Pacific Economic Cooperation Council (PECC) on May 13, 2009 in Washington, D.C., which was hosted by the East-West Center.