The growing heft of institutional investors and asset managers in several Asian economies hasfuelled expansion in outward portfolio investment, mainly in US dollar-denominated assets. Thisinvestment is predominantly in long-term instruments but is hedged for currency risk mainlythrough...

Very low interest rates in major currencies have raised concerns over international credit flows to robustly growing economies in Asia. This paper examines three components of international credit and highlights several of the policy challenges that arise in constraining such credit. Our...