Asian Financial Markets

Pre-req: SIPA IA6401 - Macroeconomic Analysis. This course offers a comprehensive examination of the structure, evolution, and policy challenges of financial markets across Asia, focusing on key economies including Japan, China, India, South Korea, and ASEAN member states. It provides a historical overview of Asian financial development from the 1960s to the present, emphasizing the role of financial markets in supporting economic growth.

A central focus of the course is the Asian Financial Crisis of 1997–98, exploring its causes, policy responses, and long-term impacts on financial governance. Students will analyze the IMF’s controversial role during the crisis and the subsequent shift in Asian countries’ approaches to capital flows, exchange rate regimes, and monetary policy. The course also investigates the region’s efforts toward financial integration, cooperation, and institutional reform.

The second half of the course reviews the development trajectories of individual financial markets across Asia, with particular attention to Japan’s liberalization and demographic challenges, China’s rise and its promotion of the Renminbi as a global currency, and India’s financial sector reforms. The course further explores emerging issues including central bank digital currencies (CBDCs), infrastructure investment, and regional responses to global financial shifts.

Students will engage with current policy debates, case studies, and academic literature to understand the interplay between macroeconomic policy, financial regulation, and international finance in Asia.