1. Research on the capital market in East Asia

“Research on the Possible Regional Cooperation for Capital Markets in East Asia, including regulations on stocks and foreign exchange”
Based on the perception that the development of capital markets is one of the important and urgent issues to realize long-term economic development in East Asia, especially the stock markets where stock investment can be actively made within the region, we examined the status of the stock markets in Asian countries to clarify the challenges to be tackled, and provided policy recommendations for ASEAN regional cooperation.

2. Research on Current Account Imbalances and Capital Flows

“Research on the Global Current Account Imbalances and their Impact on the Long-term Interest Rates and Foreign Exchange”
What has been brought by the expanding global current account imbalances since the Asian currency crisis? What kinds of impacts have their recent narrowing had on the economic and financial developments including long-term interest rates? What kind of relationship is between the current account imbalances and the global financial crisis followed by a global simultaneous recession? Given the awareness of these issues, IIMA reviewed the policies implemented by the afflicted countries, including expanded public expenditures, monetary easing, and capitalization of banks with public funds. Furthermore, IIMA analyzed what kind of impacts these policies have had on the economy, financial markets, and the developments of the current account imbalances.

“Challenges and Agendas toward Realization of Investment-Oriented Japan”
In recent years, Japanese income account surplus has been increasing rapidly, changing the current account structure of Japan to the one that feeds the economy not only with the trade surplus but also with the increasing investment income from abroad. Focusing on the overseas investment strategy of the Japanese financial sector, we investigated their business practices and their implications for further expansion of Japan’s investment income.

3. Research on the Financial Cooperation through the ODA and OOF

“Research on the Emerging Donor Countries in the Gulf Region”
The Gulf countries such as Saudi Arabia, Kuwait and UAE have been emerging as donor countries in the world of economic aid. We examined the whole picture of the flows from these donor countries in the Gulf region, and analyzed their scales and positions of economic aid to the developing countries. We then made proposals for which areas Japan and these emerging donor countries can cooperate and how to construct a better relationship for cooperation and coordination.

“Post Evaluation of the Untied Loan Project to Malaysia”
Based on the hearings and studies, we prepared an evaluation report on the untied loan provided to Malaysia.

4. Other Topics

We also made reports on the following themes.
・Economic conditions and indicators of Latin American countries
・Financial and Monetary Risks Creeping on the Central and Eastern European Countries—When their swelling current account deficits become unavoidable for adjustment.
・Tenth Anniversary of the European Single Currency the Euro—Its Present Status and Prospect for an International Currency
・Recent Development of the Environmental Finance in China

5. International Conference

“Strengthening Payment Systems in Asia”
—How to facilitate smooth settlement and accelerate the financial flows in Asia
IIMA served as secretariat in the international conference jointly organized by the Financial Research and Training Center of Japan’s Financial Services Agency, Keio University (Global COE Program) and Asian Development Bank Institute. Many outstanding researchers from home and abroad participated in the conference and had vigorous and intense discussions on the ways to facilitate smooth settlements in Asia to achieve more accelerated capital flows in the region.