The present study estimates the long run private investment function for the period from 1972 to 2011 by using Johansen cointegration approach. The results suggest debt servicing, inflation and private investment to be negatively associated. The study concludes positive impact of GDP growth...

This paper uses a model calibrated to suit a small open Asian economy to present a series of counterfactual policy experiments aimed at comparing conventional optimal inflation targeting (IT) under commitment and discretion and variations of simple fixed monetary policy rules (MPRs). Two...

Large accumulations of foreign reserves have been ongoing recently in Asian countries. Policymakers seem to have decided to increase high levels of foreign reserves for self-insurance or precautionary purposes against exchange rate movements. Other countries have accumulated foreign reserves to...