Back to Basics: Post-crisis Macroeconomic Rebalancing in ASEAN

This article considers the policies that can help facilitate rebalancing in ASEAN economies. As the region moves away from policies to combat the effects of the global economic crisis, rebalancing growth becomes essential. Approaches to internal rebalancing, including shifts in current patterns of consumption and investment, as well as external rebalancing strategies, such as exchange rate adjustments and reducing trade costs, are explored as ways to diversify sources of growth. We also argue that regional cooperation, particularly on exchange rate and trade policy, is a key element of any concerted effort to ensuring sustained, long-term regional growth.