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Bracing for Impact

Tuesday, October 7, 2008

Indonesia must be ready to face a global recession. The interest rate should not be raised, and government spending should increase.

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WHEN the United States sneezes, the world catches cold. Like it or not, this “illness,” caused by a scandal over defaulting housing loans, is spreading around the world. It is true that remedial efforts have gotten underway. A US$700 billion bailout plan has been approved by the US Congress. However, it is still difficult to stop the inevitable, given the expanding interlinks in the world economy.

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