(SP 88) Rethink Policy Collaboration by Hookyu Rhu, C.S. Lim Vincent and L.C. Ong Vivien
This paper examines the scope of central banking cooperation in Asia against the backdrop of global integration. We ask the question on how multilateral organisations can be made more effective in the effort to promote policy collaboration. In this region, there is currently no initiative or discussion on the possibility of merging different economic groups,…
(SP 87) Gauging the Macroeconomic Impact of Basel III on Malaysia by Eufrocinio M. Bernabe, Jr. and Jami’ah Jaffar
This study gives a preliminary assessment of the macroeconomic impact of implementing Basel III in Malaysia. This is also an attempt to contribute to the increasing studies for emerging economies, especially focusing on SEACEN members. The Basel III standards seek to significantly increase the quality and required level of banks’ capital. Hence, it is expected…
(SP 86) Global Imbalances: A Primer by C.S. Lim Vincent and Victor Pontines
The global imbalances (current-account of BOP) refers to the large current account deficits of developed economies such as the United States and the large surpluses of developing economies such as China and oil rich economies of the Middle East and Russia. In other words global imbalances are inevitably viewed as the surplus net savings of…
(SP 85) Capital Flows Management During the Post-2007 Global Financial Crisis: The Experiences of SEACEN Economies by Reza Y. Siregar Vincent C.S. Lim Victor Pontines Jamiah Jaffar and Nurulhuda M. Hussain
Although global financial stability in late 2010 and early 2011 has in general improved when compared to the 2008-2009 period of the sub-prime global financial crisis vulnerabilities remain high. The recent World Economic Outlook of the IMF (WEO September 2011) underlines the two speed recovery processes taking place in the world economies. In advanced economies…
(SP 84) The Nexus Between Inflation Targeting and Exchange Rate Volatility by Victor Pontines
This study empirically examines the issue on whether countries that target inflation systematically experience higher exchange rate volatility. A major challenge that immediately confronts such analysis is that countries do not choose their monetary regimes in a random fashion. In this paper an attempt is made to take into account the problem of self-selection in…
(SP 83)Real Sector Propagation of the Recent Global Financial Crisis: An Integrative Report by Reza Y. Siregar and C.S. Lim Vincent
This paper attempts to examine the real sector propagation of the recent global financial crisis in the SEACEN economies. The study is of particular interest as SEACEN economies are known for their trade-oriented nature.
(SP 82) Cross-border Bank Lending to Selected SEACEN Economies: An Integrative Report by Victor Pontines and Reza Y. Siregar
This study seeks to address a number of rising policy concerns from the aftermath of the recent subprime crisis. Did foreign bank lending decline sharply and transmit the financial shocks from the advanced economies to the SEACEN emerging markets Was the decline driven by the drying-up in supply of cross-border loans or more by the…
(SP 81) The Concepts of Equilibrium Exchange Rate: A Survey of Literature by Reza Siregar
The aim of this paper is to review and examine a collection of most commonly applied theoretical and empirical models of equilibrium exchange rate. The presentation on each model starts with an introduction of core theoretical frameworks. It will then be followed by discussions on relevant empirical steps to estimate the equilibrium rate. The rest…
(SP 80) Post Global Financial Crisis: Issues and Challenges for Central Banks of Emerging Markets by Reza Siregar Lim C.S. Vincent and Victor Pontines
The subprime crisis had affected many economies including those of the SEACEN region. Various measures to deal with both liquidity and solvency measures were taken by both the central banks and the relevant authorities. These included marrying micro- and macro- prudential measures of financial stability. Past financial crises have also demonstrated that the fragility of…
(SP 79) Living with Macro-financial Linkages: Policy Perspectives and Challenges for SEACEN Countries by Reza Siregar and Lim C.S. Vincent
The deepening financial liberalisation and the tightening of financial integration globally have made it more challenging to manage macroeconomic policies in general and to contain the spread of financial turbulence in particular. The financial sector has been shown to be inherently pro-cyclical and capable of amplifying macroeconomic volatilities making management of monetary policy increasingly complex….