One of the more important concepts in open macroeconomics is the “equilibrium real exchange rate†(ERER). Real exchange rate misalignments are argued to have been the cause of loss of competitiveness and growth slowdowns and eventual currency crises (in the event of sustained...

Despite numerous empirical studies examining various facets of the topic, the degree of intraregional financial integration in East Asia remains a matter of vigorous debate. This paper offers a selective survey of the recent empirical literature on financial integration, the focus being on...

Two features of East Asia’s recovery from the financial turmoil of 1997- 98 appear to be rather paradoxical. First, the regional economies (except Hong Kong, China and Malaysia) have allowed a relatively greater albeit modest degree of variability of their currencies according to market...

An East Asian community(EAC) is an idea now being seriously pursued in spite of significant challenges. Proliferating bilateral deals in Asia could emerge as building blocks towards the EAC, provided they are comprehensive, ROOs simple and are in the EPA mould. Attention needs to be given to...

The main objective of the paper is to explore the role of Japan in the Bay of Bengal Initiative for Multi-Sectoral and Technical Cooperation (BIMSTEC). The analysis suggests that BIMSTEC-Japan cooperation could made a modest contribution to Asian integration. But this is contingent upon domestic...

This article analyses the importance of international commercial service transactions relating to both trade and investment, which form an essential element of analyzing production fragmentation and economic integration in Asia. Following an aggregative analysis the authors discusses data...

Policy makers are particularly concerned about the extent and speed of exchange rate pass-through into domestic prices. However, in recent times there seems to be a growing degree of disconnect between exchange rate changes and domestic consumer prices in general, or, for that matter, even into...

Most standard indicators suggest that India’s reserve stock is more than adequate. The rapid stockpiling of foreign exchange reserves implies that the RBI has been leaning-against-the-wind to keep down the value of the Indian Rupee. As India has become more export-oriented it has become...

While talk of a 'China-India axis complete with 2.4 billion people' is no doubt fanciful, the progress in relations over the seven years following the nuclear crisis of 1998 is claiming the close attention of observers of world poliitics. Above and beyod their potential economic synergy, the...

This paper examines the degree of de facto exchange rate flexibility for India over the last two decades. While there is a diversity of methods that measure de facto exchange rate regimes, none individually encapsulate all the applicable characteristics of an actual regime. It is therefore...