Financial Opening and Real-Financial Sector Nexus

Sector Nexus Sunanda Sen The experience of .some, gauntries in south-east Asia which were able to achieve and maintain higkimtes of output growth and saving and investment, moderate inflation, stable exchange rales and manageable balance of payments even as their economies underwent financial opening up contrasts sharply with the experience not only of other developing countries, such its those of Latin America, but even of the OECD countries. The special circumstances which made the achievement possible deserve careful attention and are discussed in this note.