If East Asia, including Japan, collectively makes further progress in terms of improving each economy’s financial infrastructure – for example, in clearing and settlement institutions and securities depository institutions – as well as standardizing securities regulations, cross-border investment is likely to prosper. With regard to the stock market, the number of listed firms is rapidly increasing in emerging Asia.
But the December measures did the trick, by bringing the fiscal deficit down from 12 percent to under 7 percent, and the country’s foreign reserves have since reverted to the normal pattern seen in the years prior to 2013. Barbados also has lessons to teach the world about how to grow the foreign exchangeconstrained economy.