Introduction

This book presents five theoretical and empirical studies on the important and interrelated areas of growth, capital inflows, exchange rates and monetary policy in developing economies. The econometric tests performed focuses on selected East Asian economies prior to the onset of their financial and exchange crises. The empirical parts of Chapters 2 to 4 use data on the ASEAN-4 countries, which are Indonesia, Malaysia, Philippines and Thailand. Chapters 5 and 6 use data on China.The material in Chapters 2 to 6 is so arranged that the book can be read as a whole or as stand-alone chapters for the reader who is interested in only one of the main topics covered in this book. To facilitate the latter, each chapter includes the appendices and references, as well as the list of variables and their definitions relevant to that chapter. However, a complete set of references is also provided at the end of the book.The following provides a brief introduction to the various chapters.