ABSTRACT
The International Monetary Fund (IMF)’s World Economic Outlook (2014) started by stating, “ Global activity strengthened during the second half of 2013 and is expected to improve further in 2014 – 15. The impulse has come mainly from advanced economies. . . . Growth in emerging market economies is projected to pick up only modestly. ” They worried “ because capital infl ows could slow or reverse. ” Indeed, how to tame international capital fl ows has been one of the most important policy concerns to the policy authorities of emerging economies, including those in the Pacifi c region. We must note, however, that emerging economies are heterogeneous in terms of their fi nancial and macroeconomic linkages to advanced as well as other developing economies to a great extent. Focusing on emerging economies and their macro-fi nancial linkages to other economies in the Pacifi c region as well as the rest of the world, this book is going to reveal how they are different from other emerging economies in other regions and to discuss how these characteristics are related to their macroeconomic performance and fi nancial development throughout the two major international fi nancial crises in the previous more than two decades.
