But more importantly, policies to encourage export-led growth in many Asian economies have exacerbated the situation. Some countries have actively tried to prevent an appreciation of their currencies by intervening in the foreign exchange market.
Meanwhile, it should be recalled that, when, despite the Government guarantees that covered many but not all of them, deposit outflows and bond repayments exceeded Anglo’s capacity, the Central Bank, consistent with the euro-area view that no senior bank creditors should suffer losses in the crisis, extended emergency liquidity assistance to Anglo Irish Bank.