Financial Integration and Macrofinancial Linkages in Asia

<p>This report reviews evidence of the macrofinancial linkages and feedback effects of financial distress in Asia. It proposes policy considerations and coordinated responses to enhance financial stability and resilience.</p><p><br></p><p>The Asian financial landscape has become more interconnected over the past 2 decades. Previous financial crises have proven how volatility can transmit rapidly across an interconnected financial network. Moreover empirical analyses have shown how it can reverberate across the macroeconomy. With a summary of lessons from past financial crises this report also analyzes the impact of deeper financial integration on economic vulnerability.</p>