Economic theory suggests that sound and efficient financial systems - banks, equity markets, and bond markets - which channel capital to its most productive uses are beneficial for economic growth. Sound and efficient financial systems are especially important for sustaining growth in developing...

Fiscal stimulus programs have contributed substantially to developing Asia's faster and stronger than expected recovery from the global financial crisis. This may lead to political pressures for greater use of countercyclical fiscal policy in the postcrisis period. However, the countercyclical...

Poverty reduction in the Asia and the Pacific region in 2005-2008 had been quite significant. Despite the global crisis, an estimated 150 million people exited extreme poverty by 2008 – from 903.4 million in 2005 to 753.5 million, bringing the percentage of people living under the $1.25 per...

Rebalancing growth toward domestic demand has emerged as a key postcrisis challenge for sustaining developing Asia’s rapid growth in the medium and long term. The central objective of this paper is to explore the role of fiscal policy in the region’s rebalancing process. What matters most...