Cover -- Half-title -- Series-title -- Title -- Copyright -- Contents -- Preface and acknowledgements -- 1 Financial integration -- Focus on east Asia -- Focus on financial integration -- 2 Developments in east Asia, 1997-1998 -- What happened? -- The 'fundamentals' behind what happened -- What does it mean? -- Development strategies -- Exchange rate policy -- Financial system fragility -- The current account -- Market dynamics -- A longer-term assessment of the benefits of financial integration -- Costs of financial liberalisation -- The size of the benefits from financial liberalisation -- The benefits of financial reform -- 3 Measures of financial integration in east Asia -- Legal restrictions on the capital account -- Capital flows -- Interest rate parity conditions -- Saving-investment correlations -- Consumption correlations -- Miscellaneous measures -- Conclusion -- 4 Interest parity conditions as indicators of international financial integration -- Data and estimation issues -- Covered interest rate parity -- Uncovered interest rate parity -- Basic tests of uncovered interest parity -- Explaining the anomaly -- Cointegration of interest rates -- Accounting for innovations over time -- Real interest rate parity -- Conclusion -- 5 Domestic financial integration: a precondition for international financial integration -- The money market and institutional markets -- Recent developments in bank deposit and loan markets -- Deposit and loan pricing rules under fiat and market regimes -- Fiat deposit and loan rate rules -- Market deposit and loan rate rules -- Correlations, error correction and the adjustment of institutional interest rates -- A discussion on domestic integration -- Conclusion -- 6 Financial integration and capital formation, foreign debt and the real exchange rate -- A view from the literature.

The real exchange rate, foreign debt and capital in a financially integrated economy -- Production -- Consumption -- External balance -- The real exchange rate -- The effect of incomplete financial integration -- Conclusion -- 7 Consumption and liquidity constraints: does financial integration matter? -- The Euler equation with liquidity constraints and demographic change -- Aggregation and the definition of variables -- Aggregation over time -- Demographic change and aggregation over households -- Identifying the shadow price -- The bifurcated population model -- Defining consumption and income -- Econometric estimation and results -- Results from the basic model equation - (7.11) -- Results from the fully specified model equation - (7.10) -- Domestic and international effects -- Implications for welfare and policy -- Conclusion -- 8 Summary and policy considerations -- Summarising the results -- Some policy considerations -- Financial integration and the operation of policy -- Financial integration, consumption and debt -- Endpiece -- Appendices -- Appendix 3.1: Data and definitions of consumption correlations -- Appendix 4.1: Definitions, sources and graphs of interest rate data -- Australia (figures A4.1.1-A4.1.3) -- Hong Kong (figures A4.1.4-A4.1.6) -- Indonesia (figures A4.1.7-A4.1.9) -- Japan (figures A4.1.10-A4.1.12) -- Korea (figures A4.1.13-A4.1.15) -- Malaysia (figures A4.1.16-A4.1.18) -- The Philippines (figures A4.1.19-A4.1.21) -- Singapore (figures A4.1.22-A4.1.24) -- Taiwan (figures A4.1.25-A4.1.27) -- Thailand (figures A4.1.28-A4.1.30) -- Appendix 4.2: The Solution for McCallum's (1994) Model -- Appendix 4.3: Time-varying estimates of beta -- Appendix 5.1: Summary of deregulation in banking and in deposit and loan markets -- Australia -- Hong Kong -- Indonesia -- Japan -- Korea -- Malaysia -- The Philippines -- Singapore -- Taiwan.

Thailand -- Appendix 5.2: Definitions, sources and graphs of money, deposit and loan rate data -- Australia (figure A5.2.1) -- Canada (figure A5.2.2) -- Hong Kong (figure A5.2.3) -- Indonesia (figure A5.2.4) -- Japan (figure A5.2.5) -- Korea (figure A5.2.6) -- Malaysia (figure A5.2.7) -- The Philippines (figure A5.2.8) -- Singapore (figure A5.2.9) -- Taiwan (figure A5.2.10) -- Thailand (figure 5.2.11) -- The United States (figure A5.2.12) -- Appendix 5.3 Augmented Dickey-Fuller test statistics -- Appendix 5.4 Error-correction model of institutional interest rates -- Appendix 5.5 Speed of adjustment -- Appendix 6.1 Derivation of the consumption equation -- Appendix 7.1 Definitions, sources and graphs of consumption and its determinants -- Australia (figures A7.1.1-A7.1.3) -- Hong Kong (figures A7.1.4-A7.1.5) -- Japan (figures A7.1.6-A7.1.8) -- Korea (figures A7.1.9-A7.1.11) -- Singapore (figures A7.1.12-A7.1.14) -- Taiwan (figures A7.1.15-A7.1.17) -- Thailand (figures A7.1.18-A7.1.20) -- Appendix 7.2 Estimating (7.10) -- References -- Index.