The Straits Time: Busting the myth of Asia's decoupling, Nayan Chanda, Feb. 2008: "Reality always trumps theory. We saw this when aftershocks from the American stock market tremors put to rest the theory of 'decoupling', which held that the rise of China and India has created an Asian sphere independent of global demand trends. Asia's high growth rates and growing intra-regional trade, the theory postulated, would help it ride out any downturn in the debt-ridden US economy. It worked well, until the fear of US recession hit home. The stock market jitters from Tokyo to Shanghai to Mumbai and traders' growing anxiety about the impact of a looming US recession now show Asian growth as very much linked to, in fact dependent upon, the rest of the world. Seen from the perspective of long history, the turmoil emerging out of the slowing American economy and the recent sub-prime mortgage crisis was only to be expected. A closer look at the ever-tightening global economic integration, and the nature and composition of Asian trade as well as its investment pattern, would have demonstrated the fallacy of 'decoupling' Asian and Western economies..."
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