Markets

Asian Capital Flow Determinants

Earlier literature examined determinants of international capital flows especially during the period of high and persistent capital inflows to emerging economies during 2009–2013.1 The literature mainly identified the push and pull factors and explained how these factors affect the capital flows into emerging Asia “on average.” In other words, the literature calculated the effects of these factors “on the mean” of the distribution of capital flows.

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We Will Buy Your Planes, but We Won't Enjoy It

Iran’s Ayatollah Ali Khamenei – the Islamic Republic’s ultimate authority – reluctantly blessed the nuclear agreement between Iran and the West that was signed in June 2015 and went into effect in January. Since then, he has gone out of his way to emphasize that his endorsement didn’t mean he wanted to normalize economic ties with the U.S.

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Japan's Abe Reaches for More Arrows

Prime Minister Abe is attempting to revitalise the Japanese economy after two decades of stagnant growth. In December 2012, he launched the reform program that became known as Abenomics, consisting of monetary policy aimed at reflating the economy, flexible fiscal policy with medium-term fiscal consolidation and structural reform.

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How is India's Rajan Leaving a Good Thing?

The surprise announcement last week that Raghuram Rajan, Governor of the Reserve Bank of India, was stepping down sent shockwaves around the world. Rajan, a brilliant academic who came from the University of Chicago to take up the appointment under the Singh government, was credited with stabilising the economy and turning inflation around. He is an outspoken champion of both economic and social reform. When push came to shove, he chose to go.

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In Japan, Inbound Tourists Have Eclipsed Outbound Tourists

Japan registered a travel surplus of about US$10.6 billion in 2015, suggesting its growing competitiveness as an exporter of tourism. According to the Japan National Tourism Organisation (JNTO), the number of inbound tourists increased by 47.1 percent to 19.7 million in 2015, outnumbering outbound tourists for the first time in 45 years. Foreign tourists also spent a record US$32.6 billion, up roughly 70 percent from 2014. So what explains Japan’s booming tourist industry?

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Do You Want to Run India's Central Bank?

This week’s long-speculated departure of Indian central bank Governor Raghuram Rajan reflected the Indian government’s view that he was no longer welcome at the helm. However, it also reflects the challenges all central bankers face in driving an economy.

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Brexit Reaction was Swift

The United Kingdom has voted by a close margin to leave the European Union. Here, experts from around the world react to the news which has sent shockwaves around the world and what it means for their country.

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India's Domestic Demand is Highest in the EM Space

According to current IMF projections, India is now the fastest growing major economy in the world. In 2016, it is expected to grow over a full percentage point faster than China. This is a remarkable turnaround by any standard and especially impressive against the backdrop of a stagnant global economy.

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Turkey's Turn at the EU Plate

In the vitriolic debate over the UK's membership of the EU, Turkey's potential membership became one of the talking points.  Prime Minister Cameron, who has advocated Turkey's eventual membership, is likely correct in his assessment that this that if it does take place, it won't be anytime soon.

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The Markets Watch and Wait

The UK's referendum is underway.  The capital markets are continuing the move that began last week with the murder of UK MP Cox.  The tragedy seemed to mark a shift in investor sentiment.  Sterling bottomed on June 17 just ahead of $1.40.  Earlier today in Asia, after more polls showed a move toward remain, sterling rallied to almost $1.4845, its highest level since last December.

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