While deeper financial integration is often considered conducive to the efficient allocation of resources and risk sharing, an increasingly important policy concern is whether it brings greater vulnerability to shocks. To address the latter concern, this paper uses a different approach to measuring financial integration, highlighting interconnectedness in a network of financial flows. Applying an...

This policy brief details recent economic developments in four of Asia's largest economies - Japan, India, China and Indonesia - and assesses the implications of these changes for Australia. Jenny Corbett looks at how economic frustrations led to political change in Japan and argues that, despite this year’s devastating earthquake and tsunami, there is opportunity...