With the rise of China, India and the re-emergence of East Asia from the financial crisis of 1997–98, monetary issues in Asia have acquired great significance as the region holds the largest reserves in the world and consequently plays a major role in the global macro-economy. In addition, there are also a great variety of monetary policy regimes at play in the region—reflecting each country’s needs and policy preferences. This volume explores monetary, exchange rate and macroeconomic policies in Asia. A particular question that is analysed is Asia’s experience since the crisis with the use of monetary policy to manage the resurgence in capital inflows. It also examines the theoretical and policy issues associated with international capital flows, the increasing degree of integration of financial markets and exchange rates for emerging Asian economies. The book is unique in focussing on China, India and Southeast Asia, rather than just having a sub-regional or country-specific focus. Rigorous empirical analysis is applied to important practical policy issues. The book also provides accessible overviews of recent research relevant to the questions that are explored and is written throughout in a manner that is accessible to policy makers, students and business/financial journalists.

Tony Cavoli is a Senior Lecturer at the School of Commerce, University of South Australia. Prior to this, he was at the School of Economics and Finance, Queensland University of Technology. Ramkishen S. Rajan is an Associate Professor at the School of Public Policy, George Mason University, USA, a position he has held since January 2006. Prior to that he was at the faculty of the School of Economics, University of Adelaide, Australia where he remains a Visiting Associate Professor. He is also a Visiting Senior Research Fellow at the Institute of South Asian Studies (ISAS) at the National University of Singapore.