DefinePK

Abstract

This paper analyzes macroeconomic adjustments in Southeast Asia, emphasizing inflation dynamics, monetary policy, and economic resilience in ASEAN countries. Inflation, propelled by supply chain disruptions, fluctuating commodity prices, and global economic shocks, impedes economic progress and diminishes household purchasing power throughout the region. The research employs a mixed-methods approach to analyze data from ASEAN central banks, World Bank, and IMF reports, investigating the relationship between inflation trends, economic growth, and monetary and fiscal actions. Findings indicate modest inflation stability in Indonesia and Malaysia, in contrast to pronounced inflationary surges in Lao PDR and Myanmar, which impede growth and diminish buying power. Adaptive monetary policies, exemplified by Malaysia’s exchange rate systems, alongside fiscal measures like targeted subsidies in Vietnam, have demonstrated efficacy in controlling inflation and enhancing resilience. Nonetheless, structural inefficiencies and regional inequities endure, underscoring the necessity for coordinated ASEAN policies. The results correspond with current literature, highlighting inflation-targeting frameworks and monetary independence but revealing distinct issues in nations with limited economic diversification. This report advocates for more regional collaboration, flexible monetary policies, and economic diversification to secure sustained growth and stability in the face of changing global challenges. The results inform policymaking initiatives for sustainable economic development in Southeast Asia.