>Though it may be bad manners to bask in the misfortune of others, it is now apparent that the economic crisis that began in Asia 2 years ago turned out to be a great tonic to the U.S. economy. But now, with Asian economics on the mend, their gain could mean some pain here. The U.S. economy now faces the prospect of a modest slowdown as interest rates and prices for many goods inch up, forcing companies and consumers to curb their free-spending ways. ... (Washington Post, page E1).< In what way was the 1997 Asian economic crisis a "great tonic" to the US economy? Is it because the price of US imports fell? How much real recovery is there in Asia? or is it just financial markets and banks that are doing better there? How long can the US keep having such large balance of trade (and current account) deficits? Is there some sort of natural limit to US foreign borrowing? Jim Devine [EMAIL PROTECTED] & http://clawww.lmu.edu/Faculty/JDevine/jdevine.html
