Asia's deepening financial crisis: Japan as a critical uncertainty

Japan's response to the economic crisis in East Asia is critical, not only for Japan itself but also for the Asia‐Pacific region and for the world. Kent Calder, Special Advisor to the US Ambassador to Japan, argues that the massive Japanese economy can potentially serve as a locomotive for the region, and as a sturdy fire wall to prevent the crisis from spreading. To do this, Japan must stimulate its economy, open markets further to Asian imports, and strengthen its financial system. If it fails, Japan could become part of the problem, instead of part of the solution.