The five-country study found in this volume examines how the ASEAN countries performed aggregatively during the 1970s in response to several shocks. The sources of the shocks are traced and the subsequent policies are then described in detail to understand their appropriateness as stabilization...

Full convertibility on the capital account brings with it the danger of real appreciation of the domestic currency as a consequence of additonal net capital imports. The real appreciation, in its turn, disfavours exports. At the end of the 1970s, Singapore and Malaysia had liberalized almost...

We analyze the impact of fiscal and monetary stimulus in an economy with mortgage debt, where inflation redistributes from savers to borrowers. We show theoretically that fiscal transfers without future tax increases cause a surge in inflation, increasing consumption demand and house prices. The...

A macroeconomic stabilisation function for the euro area - as envisaged in the Five Presidents' Report - plays a central role in the debate on deepening Economic and Monetary Union (EMU). We evaluate a broad range of options, their impact on economic growth, macroeconomic stabilisation and...