This paper discusses Japan’s strategy for Asian monetary integration. It argues that Japan faces three major policy challenges when promoting intraregional exchange rate stability. First, there must be some convergence of exchange rate regimes in East Asia, and the most realistic option is for...

This paper revisits the issue of exchange rate regimes in emerging Asia. It is divided into two main parts. The first part compares de jure and de facto exchange rate regimes in Asia over the decade 1999–2009. It finds that while Asia is home to a wide array of exchange rate...

Considering that India and Central Asian countries have held historical economic linkages and their future path of joint economic progress needs to be studied in greater detail (see Annexure I for the background) Research and Information System for the Developing Countries (RIS), New Delhi and...

There is one other important reason for arguing that a deep comprehensive ASEAN integration is indispensable under the current network of initiatives on external relations. Using ASEAN as a strange attractor for an East Asian integration is unlikely to bear fruits unless ASEAN is willing to set...

With the growing internationalisation, the traditional old linkages between India and Africa are gradually emerging as a dynamic and vibrant trade and investment partnership, benefiting all the partner economies. The rapid economic transformation of Indian economy and her emergence as major...

Since the Asian crisis it has been recognized that exchange rate and monetary policy strategies must involve a fairly high element of flexibility rather than a single-minded defense of a particular rate. One way this flexibility might be introduced is by a country adopting an open economy...

Recently, a dramatic accumulation in foreign exchange reserves has been widely observed in developing countries. This paper explores the possible long-run impacts of this trend on macroeconomic variables in developing countries. We analyze a simple open economy model where increased foreign...

This paper investigates certain macro data on the Indian economy to draw inferences on the sustainability of the economic growth experienced over the last couple of decades. Interpreting sustainability in terms of the maintenance of different forms of capital to ensure that future consumption...

This paper discusses desirable exchange rate regimes and how countries can shift from their current regimes to these regimes over the medium term. We demonstrate the superiority of a basket-peg regime with the basket weight rule over a floating regime with the interest rate rule or the money...

This paper examines the international transmission effects that a positive supply shock in emerging economies may have on inflation in developed economies. We construct a dynamic stochastic general equilibrium (DSGE) model for three countries and analyze the impact of a supply shock in an...