The levy and collection of appropriate user charges is essential and a certain degree of financial engineering, including public partnership, is required for providing adequate and relatively large returns. The current availability of high savings in Asian countries can therefore be married to the development of adequate financial and capital markets to avoid the potential fiscal challenges of ageing in Asia.
Low and sustainable inflation is key to macroeconomic stability. Monetary authorities, by emphasizing price stability can anchor inflation expectations, thereby facilitating the emergence of a smooth term structure of interest rates. This would not only strengthen monetary and fiscal coordination but also develop the debt market.