China and many export-dependent economies in the region could loosen fiscal policy, while Japan's central bank could boost its asset purchases, he said, adding that efforts to trim external surpluses would reduce exposure to outside risks and support global growth.
But many struggle emotionally or mentally with (1) a significant decrease in earnings and (2) a significant decrease in exposure, visibility, and external adoration.
Small businesses are more dependent on external sources of financing because they have less ability to offset their exposure to financial crises through hedging and have less access to the bond markets, he said.