Financial market developments and their implications for monetary policy

BIS Papers No 39
April 2008

This volume features eight papers written for the conference "Financial market developments and their implications for monetary policy". The event was jointly organised by the BIS Representative Office for Asia and the Pacific and Bank Negara Malaysia in Kuala Lumpur on 13 August 2007. Drawing upon experiences in the Asia-Pacific region and beyond, these papers characterise the key financial market trends and developments over the past decade and assess their implications for three aspects of monetary policy: (a) the formulation of policy and the transmission mechanism, (b) the implementation of policy at the operational level, and (c) the use of financial market information in the policy process.

JEL classification: E44, E50, E52, E58, F36

Keywords: financial market development, financial intermediation, financial market indicators, monetary policy, monetary transmission mechanism, market operation, Asia and the Pacific

Chapters

Key developments in the financial landscape

Impact on the formulation of monetary policy

Impact on the conduct of monetary policy

Usefulness of financial market indicators for monetary policy