The international financial crisis and policy challenges in Asia and the Pacific

This volume is a collection of the speeches, presentations and papers from a conference on "The international financial crisis and policy challenges in Asia and the Pacific". The event was co-hosted by the People's Bank of China (PBC) and the Bank for International Settlements (BIS) to mark the formal completion of the BIS Asian Research Programme. It was held on 6-8 August 2009 in Shanghai, China, at the same location where the establishment of the Programme was first announced in 2006. Senior officials from all 12 Asian Consultative Council (ACC) central banks, as well as academic scholars and economists from the BIS Representative Office for Asia and the Pacific attended the conference. The formal addresses included speeches by Jaime Caruana, General Manager of the BIS, Zeti Akhtar Aziz, Chair of the ACC and Governor of the Central Bank of Malaysia, and Zhou Xiaochuan, Governor of the PBC. The conference provided an opportunity to re-examine the existing approaches to preserving monetary and financial stability in Asia and the Pacific, in the light of the lessons of the international financial crisis. Even though the impact of the crisis was more muted in this region than elsewhere, there are many lessons to be learned.

JEL classification: E5, F3, G01, G2

---

Full text:

• PDF (402 pages, 3169 kb)

	Page
Programme	iii
List of participants	vii
Introduction	1
Executive summaries	4
Opening remarks
Zhou Xiaochuan	15
Jaime Caruana	17
Backgound paper
The international financial crisis: timeline, impact and policy responses in Asia and the Pacific Andrew Filardo, Jason George, Mico Loretan, Guonan Ma, Anella Munro, Ilhyock Shim, Philip Wooldridge, James Yetman and Haibin Zhu	21
Session 1: Development of financial markets in Asia and the Pacific
Development of financial markets in Asia and the Pacific: the international financial crisis and policy challenges Suresh Sundaresan	83
Why issue bonds offshore? Susan Black and Anella Munro	97
Motivations for swap-covered foreign currency borrowing Anella Munro and Philip Wooldridge	145
Private information, stock markets and exchange rates Jacob Gyntelberg, Mico Loretan, Tientip Subjanij and Eric Chan	186
Discussant remarks by Sukudhew Singh	211
Panel remarks by Joseph Yam	215
Panel remarks by Grant Spencer	217
Panel remarks by Ong Chong Tee	219
Session 2: Monetary policy and exchange rate issues in Aisa and the Pacific
Exchange rate policies Charles Engel	229
Targeting inflation in Asia and the Pacific: lessons from the recent past Andrew Filardo and Hans Genberg	251
Financial deleveraging and the international transmission of shocks Michael B Devereux and James Yetman	274
Discussant remarks by Kyungsoo Kim	290
Panel remarks by Amando Tetangco, Jr	296
Panel remarks by Ric Battelino	303
Session 3: Financial stability issues in Asia and the Pacific
Banks and public sector authorities: the international financial crisis and policy challenges in Asia-Pacific C A E Goodhart	307
Contagion and risk premia in the amplifiaction of crisis: evidence from Asian names in the global CDS marke t Don H Kim, Mico Loretan and Eli M Remolona	318
Determinants of house prices in nine Asia-Pacific economies Eloisa T Glindro, Tientip Subjanij, Jessica Szeto and Haibin Zhu	340
Discussant remarks by Diwa C Guinigundo	371
Panel remarks by Zhou Xiaochuan	376
Panel remarks by Masaaki Shirakawa	378
Panel remarks by Tarisa Watanagase	383
Closing remarks
Zeti Akhtar Aziz	387
Jaime Caruana	389