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Description

The global financial crisis quickly evolved into a full blown economic crisis that has hit the Pacific. The looming impacts look to be larger than expected 6 months ago, and are unfolding rapidly.

These impacts are likely to be felt over 2009 and into 2010. Even if the global economy picks up in the second half of 2010, as the most recent forecasts suggest, it may take until 2011 for the Pacific economies to fully recover.

This policy brief looks at the challenges created by the global economic crisis and discusses policy options to mitigate its impacts. Should monetary policy be relaxed? Is a fiscal stimulus appropriate? What would a fiscal stimulus look like, and how long should one last? What can be learnt from the actions of neighboring economies?

These are the sort of pragmatic considerations that the region’s economic decision makers are facing. This policy brief tries to help decision makers ‘take the helm’ in finding a way through these difficult economic times. It looks for the key questions that need to be asked, and seeks to provide guidance on practical answers.

Country-specific actions plans are needed for a response to the global crisis. The policy brief is intended to help the region’s fiscal and monetary authorities prepare action plans, help businesses and the public work with governments on a response, and help development partners better understand the needs of the region.

Contents

• Foreword
• Summary 
• The Global Storm has Hit 
• Setting a Course 
• At the Wheel 
• Staying on Course 
• Annexes
• References