Japan Confronts the Global Economic Crisis
In the face of the global economic crisis of 2008-09, Japan has played a positive role in helping to stabilize the regional and global financial systems. Among the positive actions it has taken have been large-scale fiscal and monetary stimulus at home, an unprecedentedly large loan
to the International Monetary Fund, liquidity support to South Korea, and a proactive role in G-20 discussions. However, regional arrangements such as the Chiang Mai Initiative have been of minimal importance in preventing financial crises in East Asia. Japan can continue to demonstrate leadership
in promoting regional economies and financial systems by expanding its current activities, while ensuring that regional arrangements continue to support global ones.