ESA1999: Real exchange rates and international trade linkages, Australia, ASEAN and global regions.

The successful intervention by the IMF in favour of some of its more vulnerable smaller members, in the face of a dramatic reversal in capital investment flows illustrates the strong unifying forces in the world economy. A survey of global CGE studies with a focus on trade liberalisation and stabilisation issues identifies the application of structural factors to the current economic problems. For the period since 1990, with a dataset of 165 economies, we analyse the pattern of trade as influenced by changes in the real effective exchange rate, use panel data analysis methods. In addition, by expanding the data to quarterly observations, we analyse individual economies to identify the existence of stable and well-defined trade elasticities.