In hindsight, perhaps, we may have been trying to protect our people too much, because as things are unfolding we are all going to be affected – and in some cases, to a great extent. Most countries in the region have not been seriously affected through the “financial channel”, meaning simply that our banks have not collapsed.
"The Transmission of Domestic Shocks in Open Economies”, paper presented at "International Dimensions of Monetary Policy," a conference sponsored by the National Bureau of Economic Research Conference on Policy, held in Barcelona, June 11-13, www.nber.org/booksnew/gert07-1. Faust, Jon, John H. Rogers, Shing-Yi B. Wang, and Jonathan H. Wright (2007).