From health crisis to financial crisis: The role of Australia’s financial support in preventing deep crises in Asia

Australia can help, and it has an incentive to do so. This paper explores the incentives Australia faces in helping ensure the financial stability of Asia’s emerging economies and outlines practical ways Australia could help deliver it. Australia should extend and expand its network of central bank currency supports in the region, substantially boosting financial stability which, under any realistic scenario, will be costless to the Australian Government. The paper explores other actions Australia can take using its membership in regional and global institutions to support Asia and strengthen Australia’s standing in the region. The perfect financial storm hitting Asia Emerging economies in Asia face a perfect financial storm of events. First, they have significantly weaker healthcare systems, weaker social safety nets and lar