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ASEAN Financial Integration

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ASEAN Financial Integration

IMF,

5 min read
5 take-aways
Audio & text

What's inside?

ASEAN has a long way to go to achieve financial integration, but it can learn a lot from Europe’s mistakes.

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Editorial Rating

7

Qualities

  • Comprehensive
  • Analytical
  • Scientific

Recommendation

The 10 countries of the Association of Southeast Asian Nations (ASEAN) are close to creating the world’s newest economic power bloc – the ASEAN Economic Community (AEC). However, as economists Geert Almekinders, Satoshi Fukuda, Alex Mourmouras and Jianping Zhou point out, the AEC must plan and regulate on a transnational level to insulate itself from the kinds of shocks that shook the euro zone. With careful execution, financial integration will attract a surge of foreign investment and capital flows to the ASEAN region. However, as this lucid, structured and comprehensive analysis explains, various risks could imperil a project that shows huge promise. getAbstract recommends this study to investors, executives and policy makers with interests in the region.

Summary

As the projected late-2015 birth of the Association of Southeast Asian Nations’ proposed ASEAN Economic Community (AEC) draws near, the goal of greater financial integration among ASEAN’s 10 members – Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam – is still a long way off. Financial integration can bring the countries significant benefits, channeling greater resources toward growth and poverty reduction, and helping mitigate future economic shocks, but the scale of the task is formidable. The creation...

About the Authors

Geert Almekinders, Alex Mourmouras and Jianping Zhou are economists with the International Monetary Fund. Satoshi Fukuda is in the graduate program at the University of California, Berkeley.


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