Lacking sufficient information, an adverse event might trigger losses in many dimensions. As has happened since this summer, this could lead to a liquidity squeeze in money markets: banks would not be willing to lend to one another even at short maturity.
Hence, Asia needs to be conscious of the challenges to public policy and the international community would also gain by being supportive of policies that benefit Asia and the global economy over the medium term to longer term. Such collaborative and mutually reinforcing policies are critical for growth and stability in all regions. Let me recount a few important challenges in Asia.