Expanding the boundaries of monetary policy in Asia and the Pacific
BIS Papers No 88 Expanding the boundaries of monetary policy in Asia and the Pacific Proceedings of a conference held on 19–21 August 2015 in Jakarta, Indonesia and co-hosted by Bank Indonesia and the Bank for International Settlements Monetary and Economic Department October 2016 The views expressed are those of the authors and not necessarily the views of the BIS. This publication is available on the BIS website (www.bis.org). © Bank for International Settlements 2016. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISSN 1609-0381 (print) ISBN 978-92-9197-993-6 (print) ISSN 1682-7651 (online) ISBN 978-92-9197-994-3 (online) BIS Papers No 88 i Contents Foreword .................................................................................................................................................. iii Programme ............................................................................................................................................. vii List of participants ................................................................................................................................. ix Opening remarks The challenges of expanding the boundaries of monetary policy Agus D W Martowardojo ..................................................................................................................... 1 Keynote speech Measuring the effects of monetary policy on house prices and the economy John C Williams ....................................................................................................................................... 7 Contributed papers Maintaining price and financial stability by monetary and macroprudential policy – evidence from Asia and the Pacific Soyoung Kim and Aaron Mehrotra .............................................................................................. 17 Comments on “Maintaining price and financial stability by monetary and macroprudential policy – evidence from Asia and the Pacific” Kazuo Momma ..................................................................................................................................... 29 A comparison of liquidity management tools in seven Asian economies Ken Kuttner and James Yetman ..................................................................................................... 33 Comments on “A comparison of liquidity management tools in seven Asian economies” Martin Bodenstein ............................................................................................................................... 59 A spectral perspective on natural interest rates in Asia-Pacific: changes and possible drivers Feng Zhu ................................................................................................................................................. 63 Comments on “A spectral perspective on natural interest rates in Asia-Pacific: changes and possible drivers” Solikin M Juhro ................................................................................................................................... 151 Managing monetary and financial stability in a dynamic global environment: Bank Indonesia’s policy perspectives Juda Agung, Solikin M. Juhro, Harmanta, Tarsidin ............................................................... 157 Comments on “Managing monetary and financial stability in a dynamic global environment: Bank Indonesia’s policy perspectives” Iikka Korhonen .................................................................................................................................... 189 Monetary independence in a financially integrated world: what do measures of interest rate co-movement tell us? Enisse Kharroubi and Fabrizio Zampolli ................................................................................... 193 ii BIS Papers No 88 Comments on “Monetary independence in a financially integrated world: what do measures of interest rate co-movement tell us?” Mardi Dungey ..................................................................................................................................... 207 Financial Globalisation and Monetary Independence Piti Disyatat and Phurichai Rungcharoenkitkul ..................................................................... 213 Comments on “Financial Globalisation and Monetary Independence” Paul Mizen ............................................................................................................................................ 227 Previous volumes in this series .................................................................................................... 231 BIS Papers No 88 iii Foreword Frank Packer and James Yetman Bank Indonesia and the Bank for International Settlements (BIS) co-hosted a research conference on “Expanding the boundaries of monetary policy in Asia an
