(SP68) Economic Openness and Effectiveness of Countercyclical Macroeconomic Policies in the Context of Global Economic Slowdown: Experiences of the SEACEN Countries by Vincent Lim Choon Seng
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
(SP67) Impact of Stock Market on Monetary Policy in The SEACEN Countries by Jung Jee Young and Vincent Lim Choon-Seng
This paper examines the relationship between stock market and monetary policy. It is noted that the empirical results show that the returns of Dow Jones are leading “causing” variable to the domestic stock market. Exchange rate also plays a significant part implying to a large extent the high degree of market integration.
(SP66) Determination of Equilibrium Real Exchange Rate in Selected SEACEN Countries by Dr. Song Ouk-Heon and Vincent Lim Choon-Seng
The objectives of this project are: to investigate determinant factors influencing the real exchange rate fluctuations; to measure the real exchange rate deviation from the equilibrium; and to provide some guidance for policymakers in implementing exchange rate policy. For the empirical study five countries out of the eleven SEACEN countries were picked: Indonesia Korea Malaysia…
(SP65) Financial Stability Through Systemic Financial Reforms: The Asian Experiences by Dr. Pichit Pattrawimolpon
The study aims to examine the following issues: (i) evolution and causes of the Asian financial crisis; (ii) general approaches to cope with the crisis; (iii) theoretical considerations of the process and strategy of bank restructuring; (iv) country specific experiences of bank restructuring and techniques; (v) bank restructuring and policy reforms of selected SEACEN countries…
(SP64) Soundness of Financial Instituitions and Economic Growth by Gloria O. Pasadilla
The paper surveys the relevant literature on why financial systems come about and the channels through which they influence real economic growth. Considering the relative frequency of financial crises among countries that liberalised their economies the paper also examines the major factors that influence financial instability and why financial liberalisation has been strongly associated with…
(SP63) Sustainability of External Account Deficits by Delano Villanueva and Vincent Lim Choon-Seng
This paper examines the notion of sustainability of current account deficit using the consumption smoothing approach model. Empirical evidences suggest that the current account deficits in Indonesia Malaysia and the Philippines can be explained by the model. Results also show that prior to the crisis there was some degree of over-borrowing but it appears that…
(SP62) Optimal Policy Mix under Financial Crisis by Delano Villanueva and Vincent Lim Choon-Seng
This paper examines ex-post solutions to the recent financial crisis. It is noted that the standard prescriptions of budgetary cuts tax increases currency depreciation and high interest rates were not effective. To avoid future crisis and in the context of an open capital market the paper proposes a longer-run policy strategy consisting of a three-pronged…
(SP61) Asset Price Inflation and its Control Measures in Selected Countries Edited by Diwa C. Guinigundo
This study aims to evaluate the extent of asset price inflation and assess its implications for goods price and financial stability; examine if the asset price cycle has fuelled or itself been fuelled by an accompanying cycle in bank credit expansion; and draw inferences on appropriate monetary and financial policies to moderate asset price inflation.
(SP60) The Effects of Government Policy And Capital Liberalisation on Private Saving in SEACEN Countries by Seung-Je Hong
This paper consists of two parts. Part I analyses the effects of government policy on the rate of private saving using both time series data and cross-country panel data for SEACEN countries. Part II examines the reasons for the decline in private saving ratios in several SEACEN countries since the 1990s which has coincided with…
(SP59) The Microeconomic Dimension of Monetary Policy by Delano Villanueva
This paper which touches on the links between the macroeconomic and microeconomic dimensions of monetary management argues that bank soundness is a sine quo non of price stability (or exchange rate stability) and vice versa. It then describes the structural weaknesses of a banking system that create conditions for a financial crisis. The paper concludes…