International investors' enthusiasm with respect to growth prospects in Southeast Asia has been followed by panic. Both the outstanding economic performance of Southeast Asian economies and their ability to master adjustment challenges had led most observers of these economies to the conclusion...

Expecting an appreciation of the Chinese currency seems to be a safe bet. There is a mounting pressure from U.S. representatives, and a majority of economists seem to believe that the Chinese economy is overheating and that the dollar peg should be loosened as soon as possible. Indeed, a nominal...