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

BIS Papers No 52 The international financial crisis and policy challenges in Asia and the Pacific Proceedings of the wrap-up conference of the Asian Research Programme, Shanghai, 6–8 August 2009 Monetary and Economic Department July 2010 Papers in this volume were prepared for the wrap-up conference of the Asian Research Programme held in Shanghai on 6–8 August 2009. The views expressed are those of the authors and do not necessarily reflect the views of the BIS or the central banks represented at the meeting. Individual papers (or excerpts thereof) may be reproduced or translated with the authorisation of the authors concerned. Copies of publications are available from: Bank for International Settlements Communications CH-4002 Basel, Switzerland E-mail: publications@bis.org Fax: +41 61 280 9100 and +41 61 280 8100 This publication is available on the BIS website (www.bis.org). © Bank for International Settlements 2010. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISSN 1609-0381 (print) ISBN 92-9131-829-9 (print) ISSN 1682 7651 (online) ISBN 92-9197-829-9 (online) BIS Papers No 52 iii Programme Thursday 6 August 2009 Welcome dinner hosted by Jaime Caruana, General Manager, Bank for International Settlements Friday 7 August 2009 Opening remarks Zhou Xiaochuan, Governor, People’s Bank of China Jaime Caruana, General Manager, Bank for International Settlements Presentation of the special BIS background paper for the conference Chair: Már Gudmundsson, Deputy Head of Monetary and Economic Department, Bank for International Settlements The international financial crisis: the timeline, policy responses and impact in Asia and the Pacific, Andrew Filardo (BIS) Session 1: Development of financial markets in Asia and the Pacific Chair: Joseph Yam, Chief Executive, Hong Kong Monetary Authority Keynote speech: Suresh Sundaresan, Capula Investment Management and Columbia University Paper presentations: Internationalisation of Asia-Pacific bond markets, Susan Black (Reserve Bank of Australia), Anella Munro (BIS), Philip Wooldridge (BIS) Private information, stock markets and exchange rates, Eric Chan (BIS), Jacob Gyntelberg (BIS), Mico Loretan (BIS), Tientip Subhanij (Bank of Thailand) Discussant: Sukhdave Singh, Assistant Governor, Central Bank of Malaysia High-level policy panel on the development of financial markets Panellists: Joseph Yam, Chief Executive, Hong Kong Monetary Authority Grant Spencer, Deputy Governor, Reserve Bank of New Zealand Ong Chong Tee, Deputy Managing Director, Monetary Authority of Singapore Session 2: Monetary policy and exchange rate issues in Asia and the Pacific Chair: Jaime Caruana, General Manager, Bank for International Settlements Keynote speech: Charles Engel, University of Wisconsin Paper presentations: Targeting inflation in Asia and the Pacific: lessons from the recent pastAndrew Filardo (BIS), Hans Genberg (BIS) Financial deleveraging and the international transmission of shocksMichael Devereux (University of British Columbia), James Yetman (BIS) Discussant: Kyungsoo Kim, Deputy Governor, Bank of Korea High-level policy panel on monetary policy and exchange rate issues Chair: Jaime Caruana, General Manager, Bank for International Settlements Panellists: Amando Tetangco, Jr, Governor, Bangko Sentral ng Pilipinas Ric Battellino, Deputy Governor, Reserve Bank of Australia Adjournment Conference dinner hosted by Zhou Xiaochuan, Governor, People’s Bank of China Dinner address: Zeti Akhtar Aziz, Chair, Asian Consultative Council and Governor, Central Bank of Malaysia Saturday 8 August 2009 Session 3: Financial stability issues in Asia and the Pacific Chair: Zhou Xiaochuan, Governor, People’s Bank of China Keynote speech: Charles Goodhart, London School of Economics Paper presentations: Contagion and risk premia in the amplification of crisis: evidence from Asian names in the CDS market, Mico Loretan (BIS), Don Kim (Yonsei University Business School), Eli Remolona (BIS) Determinants of house prices in nine Asia-Pacific economies, Eloisa Glindro (Bangko Sentral ng Pilipinas), Tientip Subhanij (Bank of Thailand), Jessica Szeto (Hong Kong Monetary Authority), Haibin Zhu (BIS) Discussant: Diwa Guinigundo, Deputy Governor, Bangko Sentral ng Pilipinas iv BIS Papers No 52 BIS Papers No 52 v High-level policy panel on financial stability issues Panellists: Zhou Xiaochuan, Governor, People’s Bank of China Masaaki Shirakawa, Governor, Bank of Japan Tarisa Watanagase, Governor, Bank of Thailand Closing remarks Zeti Akhtar Aziz, Chair, Asian Consultative Council and Governor, Central Bank of Malaysia Jaime Caruana, General Manager, Bank for Internat