This paper is an integration of the studies commissioned under the DFA-PIDS memorandum of agreement to explore the priority areas during the Philippines' APEC hosting in 2015 under the theme: "Building Inclusive Economies, Building a Better World". The four priority areas in the APEC 2015 agenda...

pt. 1. Introduction -- pt. 2. Regionalism : the World Trade Organization and the exchange rate -- pt. 3. East Asia and the Pacific -- pt. 4. Southeast Asia -- pt. 5. Sector studies -- pt. 6. Conclusion.

This paper asks how Asia should prepare for the disorderly correction of global imbalances. It recommends tightening monetary policy and allowing Asian currencies to appreciate as a way of achieving a better balance between internal and external demand. Leaving the overall level of demand...