Global financial integration has deepened Asia’s global market connections over the past 2 decades. The benefits of greater financial integration include increased and more sophisticated sources of funding, more efficient capital allocation, better governance, higher investment and growth, and risk-sharing. However, between 1990 and the present, the global economy experienced the 1997 Asian financial crisis, the 2008 global financial and economic
crisis, the 2009–2011 eurozone sovereign debt and banking crisis (European debt crisis), and an unprecedented easing of monetary policy by advanced economies such as the United States (US), Japan, and the euro area.
A review of the causes, consequences, and policy responses to the Asian financial crisis, global financial crisis, and European debt crisis will help policy makers monitor and evaluate their respective economies for areas of vulnerability. Common elements in these crises would include high leverage in the financial system and asset bubbles of varied nature and force.

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