If the Coronavirus Is Such a Big Economic Threat, Act on It

Almost all of Asia's central bankers have said the economic risks from the Wuhan coronavirus are significant. Then why aren’t they all taking action?

In a slew of interest-rate meetings this week, policymakers have been all over the map. Thailand surprised most economists by reducing rates, while the Philippines cut and India held, as anticipated. The Reserve Bank of Australia acknowledged the dangers to its commodities-heavy economy, but doesn’t appear to be in a much of a hurry to do anything about it. China quickly pumped liquidity into the financial system and lowered the money-market policy rate when trading resumed Monday.

There’s a missed opportunity in this lack of a unified response, which could accelerate a recovery from any economic hit the virus brings. However, despite many shared characteristics — proximity to China, as well as dependence on tourism, investment and supply chains — there are limits to policy integration. In the monetary arena, Asia doesn’t exist as a region the way Europe does.