Will the Tenth District Catch the Asian Flu ?

R ecently, a number of Asian economies have been roiled by financial problems, including devaluations of their currencies on international markets and sharp declines in the market valuations of publicly traded companies. The recent problems in Asia have led many analysts to sharply reduce their forecasts for Asian economic growth over the next few years and, consequently, to expect exports to Asia either to fall sharply or face stagnant growth until these problems are resolved. Lower growth in Asian exports in turn could slow growth in the U.S. economy.