Now the patients are cautiously trying the old palliatives - looser money and higher spending. To be fair, IMF prescriptions have achieved the basics of what they aimed to do. Chronic trade deficits turned into spectacular surpluses and tumbling currencies stabilized or even re-bounded part way. But side effects have included slowing economic activity and rising bankruptcies and unemployment. Even stronger economies which never needed IMF treatment have not been immune.
Governments understandably are desperate to boost their economies, but their task is tricky.
Too much stimulus could undermine the modicum of stability they have so painfully achieved. Besides, few governments have much money to throw around. But everyone is trying. Bangkok also gave corporations until next year to pay their mid-year taxes. Earlier, Kuala Lumpur cut the level of reserves banks must deposit with the central bank in a bid to boost their ability to lend.