Notwithstanding several shortcomings of CPI, in the SEACEN region as in elsewhere, for pragmatic purpose, the CPI despite its many flaws is universally accepted as a policy target for monetary policy. This is justified if we examine the construction of the consumer price index itself. Even...

This paper intends to provide some insights into whether counter-cyclical macroeconomic policies, in particular fiscal spending is effective tool to stabilising and stimulating the economy in the context of the open economic structure.