Therefore, it seems to be difficult to provide a systemic safety net under the current international financial system to protect healthy countries from the contagion of financial crisis. One practical alternative seems to be a cautious approach to financial market opening of emerging countries that would allow them to throw some sand in the wheels of international finance at the national level. For example, a currency transaction tax could be one effective means to slow down the incredibly rapid movements of short-term speculative capital. Japan's leadership role in Asia is necessary for Asian countries to recover from the current crisis. The Japanese economy represents an astounding 70 percent of the entire Asian economy.
Japan saves one third of the world's total savings.
The rapid recovery of the Japanese economy through financial consolidation and fiscal stimulus would greatly help its Asian neighbors emerge triumphant from the current turmoil. Jung Chang Young is Professor of Economics at Yonsei University, in Seoul.