The price, real and financial effects of exchange rates

Joint conference of the Hong Kong Monetary Authority and the Bank for International Settlements on "The price, real and financial effects of exchange rates", Hong Kong SAR, 28-29 August 2017.

Exchange rates play a key role in the macroeconomic and financial stability developments in the economies of Asia and the Pacific. For example, an important component of the transmission of unconventional monetary policies in the advanced economies to the region has been through changes in exchange rates. More generally, the ebbs and flows of global liquidity, large and volatile capital flows and their interactions with domestic financial cycles have important implications for macroeconomic and financial stability, as well as the use of measures intended to influence foreign exchange markets. Against this background, the BIS Representative Office for Asia and the Pacific and the Hong Kong Monetary Authority co-hosted a conference on the price, real and financial effects of exchange rates. The conference marked the completion of the BIS Asian Office's research programme in this area. Papers presented at the conference covered exchange rate puzzles; deviations from covered interest parity; devaluations and intraregional trade; exchange rates and corporate risk-taking; FX hedging and creditors' rights; and a risk-taking channel of FX reserves accumulation.

The opening remarks, keynote speech and papers presented at the conference have been published as BIS Papers No 96 in March 2018.