Are central bank balance sheets in Asia too large?

BIS Papers No 66
October 2012

This volume is a collection of the speeches, background papers and presentations from a conference on "Central bank balance sheets in Asia and the Pacific: the policy challenges ahead". The event was co-hosted by the Bank of Thailand (BOT) and the Bank for International Settlements (BIS) and was held on 12-13 December 2011 in Chiang Mai, Thailand. Senior officials from central banks, as well as academic scholars and economists from the BIS attended the conference. The formal addresses included those from Prasarn Trairatvorakul, Governor of the Bank of Thailand, and Jaime Caruana, General Manager of the BIS. The conference marked the culmination of a two-year research programme at the BIS Representative Office for Asia and the Pacific focused on central bank balance sheets, addressing the domestic and international implications of the large expansion of central bank balance sheets worldwide, with particular emphasis on Asia. This two-year research programme is a flagship activity of the BIS Representative Office; the activities in the office are guided by the Asian Consultative Council, comprising the Governors of the 12 BIS shareholding central banks in the region. 1

 

1 Those of Australia, China, Hong Kong SAR, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore and Thailand.

Welcome remarks

Welcome remarks

Keynote remarks

Why central bank balance sheets matter

Background papers

Key facts on central bank balance sheets in Asia and the Pacific
Expanding central bank balance sheets in emerging Asia: a compendium of risks and some evidence
Central bank balance sheets and foreign exchange rate regimes: understanding the nexus in Asia
On the use of sterilisation bonds in emerging Asia

Contributed papers

Central bank balance sheet expansion: Japan's experience
Comments on Kazumasa Iwata and Shinji Takenaka's paper "Central bank balance sheets expansion: Japan's experience"
Mark M Spiegel Comments on Kazumasa Iwata and Shinji Takenaka's paper "Central bank balance sheets expansion: Japan's experience"
Global imbalances and foreign asset expansion by developing-economy central banks
Comments on Joseph Gagnon's paper "Global imbalances and foreign asset expansion by developing-economy central banks"
Comments on Joseph Gagnon's paper "Global imbalances and foreign asset expansion by developing-economy central banks"
Central Bank balance sheets as policy tools
Comments on A Durré and H Pill's paper "Central bank balance sheets as policy tools"
Comments on A Durré and H Pill's paper "Central bank balance sheets as policy tools"
International spillovers of central bank balance sheet policies
Comments on Qianying Chen, Andrew Filardo, Dong He and Feng Zhu's paper "The impact of central bank balance sheet policies on the emerging economies"
Comments on Qianying Chen, Andrew Filardo, Dong He and Feng Zhu's paper "International spillovers of central bank balance sheet policies"
Changes in central bank balance sheets in response to the crisis: Dinner address for the BOT-BIS research conference
Reserves, liquidity and money: an assessment of balance sheet policies
Sovereign debt management and the central bank: an emerging market perspective
Debt and monetary policy: comments on Jagjit S Chadha, Luisa Corrado and Jack Meaning's paper "Reserves, liquidity and money: an assessment of balance sheet policies", and further thoughts

Policy panel

Dealing with volatile capital flows in Korea
Regional challenges ahead - dealing with capital flows, prolonged exchange rate intervention and their consequences in Asia and the Pacific

Wrap-up panel discussion

Wrap-up panel discussion