The global financial crisis (GFC) began three years ago, but the world economy is still in its shadow. The sluggishness of the economic recovery in the US and the recurrence of the European debt crises destroys the confidence of investors as well as consumers. "Double dip" appears as a threat from time to time. Under these circumstances, it is imperative to understand fully the impact of the GFC and the effectiveness of various policy responses to it. Using the GTAP model, the GTAP database 7.0 and macroeconomic data, this paper will gauge the impact of the GFC on the Asia-Pacific region. The paper will also simulate and assess the effect of the policy responses in Asia-Pacific countries, such as massive government investment in infrastructure and capital-intensive goods, and tax cuts and subsidies to help business and save jobs. By analyzing the simulation results, this paper will shed light on the contributing factors of the GFC and the efficient ways to cope with a large negative economic shock like the GFC.