This paper reviews the experience of four ASEAN countries in dealing with an unprecedently strong influx of foreign capital in the late 1980s and early 1990s. While there was some increase in inflation associated with the inflows, it was relatively minor, and real exchange rates did not...

This paper reviews the experience of four ASEAN countries in dealing with an unprecedently strong influx of foreign capital in the late 1980s and early 1990s. While there was some increase in inflation associated with the inflows, it was relatively minor, and real exchange rates did not...

This paper was presented at the SEACEN-IMF Seminar on Issues Related to the Recent Surge in Capital Inflows to the SEACEN Countries, held in Seoul and hosted by the Bank of Korea from 14 - 16 May 1993. It analyses the causes and economic effects of, and the policy responses to surges in capital...