Liberalized capital accounts and financial integration can enrich a country’s welfare as long as they are appropriately coordinated with the adequate strengthening of policy frameworks. Otherwise, volatile capital flows and financial contagion, promulgated by capital account liberalization and...

One of the reasons why some ASEAN countries are watchful of China is the sheer size of its economy compared to theirs. The rise of China poses some concern to them. However, the ASEAN economies are resilient—they have successfully competed with various other developing regions, and have...

The possible crucial role of international bank lending in the transmission of adverse economic disturbance from advanced economies to emerging economies in the recent global financial crisis has once again placed this type of capital flows into sharper scrutiny both in academic and policy...

This paper presents a comprehensive and analytical review of monetary policy-making in the East Asian economies since the 1997 financial crisis. Focusing on the three key issues of objectives, instruments and institutional developments, it surveys the recent choice of monetary policy objectives...

This paper reviews some of the main issues revolving around the recent debate about exchange rate policy, centering on relationships among exchange rate flexibility, competitiveness, and financial discipline. The paper also looks at the implications of the debate for the formulation of exchange...

The synchronised economic downturn in the U.S., Euro area and Japan in 2001, mainly caused by a correction in the global IT sector and the events of September 2001, sharply reduced the export demand in most SEACEN countries causing deterioration in external trade activities. The resulting...

One of the main responsibilities of central banks is to ensure financial stability. In recents years, the task is even more challenging with liberalisation and increasing integration with global markets. In this respect, the SEACEN countries have learnt their lessons well by placing financial...

This paper focuses mainly on the impact of exchange rate changes in key currencies on the external debt of developing countries. It presents a systematic way of analysing the impact of a strongly depreciating U.S. dollar vis-a-vis other major currencies on the external debt of developing countries.

This Occasional Paper, prepared by Bank Indonesia, served as a background paper to facilitate discussions on ¡°Financial Deepening to Support Monetary Stability and Sustainable Growth¡± among the SEACEN Governors at the 43nd SEACEN Governors' Conference held on 21 March 2008 in Jakarta,...

This paper was presented at the SEACEN-IMF Seminar on Issues Related to the Recent Surge in Capital Inflows to the SEACEN Countries, held in Seoul and hosted by the Bank of Korea from 14 - 16 May 1993. It analyses the causes and economic effects of, and the policy responses to surges in capital...