Financial market developments impact directly and indirectly on real economy outcomes, particularly in the short term, and developments in the macroeconomy affect financial markets, systems and institutions. This program brings together work on financial interactions with an assessment of the impact of markets and institutions on the economy and implications for policy. It includes assessment of broader trends in the macroeconomy and finance. Areas of investigation include:

• The role of international financial markets in transmitting shocks between economies, including during periods of financial stress.
• Regional and global financial cooperation and architecture, with a particular focus on East Asia.
• Financial markets, institutions and systems, including the integration of financial markets, electronic finance, harmonisation of financial systems and the nexus between finance and economic growth and development.
• Policy dialogue and the interaction between policy decisions, such as fiscal and monetary policy and structural policies, and financial development, including a focus on East Asia.