Asia Regional Integration Center

In this paper, Jayant Menon examines the macroeconomic consequences of large capital inflows. These macroeconomic aspects can be particularly important in transitional economies like Viet Nam, where some of the tools for macroeconomic stabilization may be blunt or unavailable. This constraint, combined with a young and inexperienced banking system and investment-hungry state-owned enterprises, increases the risk of imbalances that could result in crisis.

Asia's capital markets are starting to stabilize and the region's relatively resilient economies should help them recover as the global crisis ebbs and investor appetite returns, says the inaugural issue of ADB's Asia Capital Markets Monitor. Read the news release.

This book, edited by Joseph Francois, Pradumna B. Rana, and Ganeshan Wignaraja, is a rich volume of perspectives on Pan-Asian integration from leading thematic experts covering critical issues including regional patterns of trade and investment, services trade, trade and monetary cooperation, infrastructure, logistics and trade facilitation.  Read more.

By exploring past financial regionalist projects in Asia, Shintaro Hamanaka argues that Asian countries, especially Japan, have held a strong desire to establish an Asia-only regional cooperation framework at least since the early 1990s. Regionalism can be best understood as a project under which a relatively minor power seeks to establish a framework that excludes more influential states in order to increase its influence within the group.

Prof. Peter Warr, The Australian National University, estimates the economic impacts of the second Mekong River Bridge between Thailand and Lao PDR. Results suggest that transport cost reductions due to improvement of inter-regional transport facilities will produce a large increase in inter-regional trade volumes in both directions. Please confirm participation with Ms. Liza Cruz at mlscruz@adb.org.

Prof. Andrew Rose, University of California, Berkeley, finds that apart from rising trade, inflation targeting promotes business cycle synchronization and thus can be useful in easing the transition towards monetary union. This result challenges the oft-cited benefit that inflation targeting provides insulation from foreign shocks. Please confirm participation with Ms. Liza Cruz at mlscruz@adb.org.

Local currency bond markets are set to expand this year with several governments likely to sell more debt to finance their economic stimulus packages. Companies are also expected to turn to local markets to refinance or raise fresh capital, says the latest issue of Asia Bond Monitor.    Read the news release and full report.   

Within the next few decades, Asia is poised to become the oldest region in the world. A rapidly aging population can have adverse effects on economic performance and prospects through a decrease in the labor force, lower saving and investment rates, and spiraling pension and health care costs. In this paper, Jayant Menon and Anna Melendez-Nakamura examine the impact of aging on the region and discuss policy options to deal with its challenges. To prevent an “aging crisis” in Asia, policymakers need to start refashioning their institutions and policies to influence behavior, and they need to do so quickly.