ACKNOWLEDGEMENTS

ABBREVIATIONS

INTRODUCTION

EMERGING HEADWINDS FOR ASIA AND THE PACIFIC

                Second phase of crisis in developed economies

                Varied Asia-Pacific exposure to the slowdown in the developed world

                Continuing inflationary pressure from abroad

                Increased volatility in financial markets

OUTLOOK FOR 2012

POLICY CHALLENGES AND OPTIONS

                Navigating the growth and inflation balance

                Coping with capital flows

                Rebalancing amid external pressures