Comments on Financial Integration in Asia: A Systemic View on Currency Markets

Abstract

June 01 2020 Comments on Financial Integration in Asia: A Systemic View on Currency Markets Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2020 by the Asian Economic Panel and the Massachusetts Institute of Technology2020Asian Economic Panel and the Massachusetts Institute of Technology Asian Economic Papers (2020) 19 (2): 62–64. https://doi.org/10.1162/asep_a_00756 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments on Financial Integration in Asia: A Systemic View on Currency Markets. Asian Economic Papers 2020; 19 (2): 62–64. doi: https://doi.org/10.1162/asep_a_00756 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Tao Liu, Central University of Finance and Economics: This paper evaluates the degree of financial integration in Asia, from the perspective of currency markets. This topic is important for both academic research and policy analysis. There has been a long-standing debate on the cost and benefit of financial opening and capital account liberalization. Counter-cyclical financial flows help a country smooth consumption and improve the social welfare. Cyclical financial flows, however, would increase the volatility of output and consumption, making it more difficult for central banks to manage the economy. It is therefore important to first examine the status quo of financial market integration before governments make decisions on capital account liberalization. This issue has particular urgency and importance for ASEAN countries, given the catastrophic Asian financial crisis in 1997. The authors rely on the variance decomposition in Diebold and Yilmaz (2014), as well as the pairwise Granger causality... You do not currently have access to this content.