Dr. Lorenz Weimann
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First, Asia's financial institutions held hardly any investments in problem loans and bonds, unlike their US and European counterparts. This means that the local financial systems in Asia were able to continue functioning normally and providing the economy with loans, even during the worst phase of the financial crisis in the six months spanning the winter of 2008/2009.
Second, the rapid and very dynamic recovery witnessed in Asia's emerging economies owes itself to the very fast and aggressive action taken on the monetary and fiscal policy front. A long period of very stability-oriented fiscal policy, at least in most countries, gave many governments considerable room for maneuver, allowing them to both develop and then implement extensive economic stimulus packages within a very short space of time.