This book provides empirical analysis on the interactions between the financial sector and macroeconomic and financial stability in EMDEs and those in the Asian region. It covers exchange rate policies and financial stability; financial inclusion and monetary transmission; and foreign direct investment (FDI) and regional integration.

Tony Cavoli is an Associate Professor at the University of South Australia (UniSA) Business School. At UniSA, he is also a researcher in the Centre for Applied Finance and Economics (CAFE), as well as the Program Director of Postgraduate Programs in Commerce. He is a deputy editor of the Journal of International Commerce, Economics and Policy and an Executive Editor of the Journal of Asian Economics.

Sasidaran Gopalan is currently a Senior Research Fellow at the Nanyang Business School (NBS), Nanyang Technological University (NTU) in Singapore. He leads the applied economic policy research at the Nanyang Centre for Emerging Markets, attached to the Division of Strategy, International Business and Entrepreneurship at NBS. Prior to joining NBS, he was an Assistant Professor at the Graduate School of Public Policy, Nazarbayev University in Kazakhstan (2018-2019), a Research Fellow at the Lee Kuan Yew School of Public Policy, National University of Singapore (2015-2018) and a Post-Doctoral Fellow at the Hong Kong University of Science and Technology (2014-2015).

Ramkishen S. Rajan is a Professor at the Lee Kuan Yew School of Public Policy, National University of Singapore. Prior to this, he was a Professor of Economics at ESSEC Business School, Asia-Pacific (2016-2017) after spending a decade (2006-2016) as a Professor of International Economic Policy at George Mason University (GMU) in Virginia, USA. He was the founding editor of the Journal of International Commerce, Economics and Policy, associate editor of the Singapore Economic Review and sits on the editorial board of various other academic journals.

Part 1: Monetary and Exchange Rate Policies 1. How Have Exchange Rate Policies Evolved in an Era of Financial Globalisation? 2. Has the "Impossible Trilemma" Morphed into a "Dilemma"? 3. How Does Financial Liberalisation Affect Interest Rate Transmission? 4. How Effective is Inflation Targeting under Different Levels of Financial Development? Part 2: Financial Inclusion and Macroeconomic Policies 5. Does Foreign Bank Presence Promote or Impede Financial Inclusion? 6. Does Financial Liberalisation Ease Firms' Credit Constraints? 7. How Does Financial Inclusion Affect Macroeconomic Volatility? Part 3: Foreign Direct Investment Flows and Real Impacts 8. Do Greenfield FDI Inflows and M&As Impact Growth and Investment Differently? 9. What Attracts FDI Inflows to Asia? 10. Does Institutional Quality Matter in How Capital Flows Influence Economic Growth?