How Asia Copes with Shifting Capital Flows
Julia Leung, Under Secretary for Financial Services and the Treasury, Government of Hong Kong SAR (2008-13); Academy Julius Fellow, International Economics, Chatham House
Dame DeAnne Julius DCMG, CBE, Chairman, Chatham House (2003-12); Chair, University College London (UCL); Independent Non-Executive Director, Roche Holdings SA (Switzerland); Independent Non-Executive Director, Jones Lang LaSalle (USA)
Sir Thomas Harris, Vice Chairman, Asia, Standard Chartered Bank
Chair: Dr Paola Subacchi, Research Director, International Economics, Chatham House
With increasingly interconnected global markets, the challenges posed to Asia and its policy responses provide important lessons to other emerging markets. The speaker will examine how Asian economies cope with shifting capital flows between safe and emerging market risk assets under current ultra-loose monetary conditions.
The event will see the launch of the Chatham House Research Paper Facing the Flood: How Asia Is Coping With Volatile Capital Flows. The stability of cross-border flows is a shared responsibility of both recipients and suppliers (i.e. countries of major reserve currencies) of private flows and requires coordination in areas ranging from monetary policy, cross-border regulation to crisis prevention. The author, Julia Leung, argues that both global and regional safety nets should be strengthened. Having identified the provision of US dollar liquidity by the US Federal Reserve as the most important stabilizing factor at times of crisis, she proposes extending the its current currency swap lines with five central banks in advanced economies to Asia and other emerging markets. She also supports the move toward a multipolar global monetary system in the longer run and encourages the supply of safe assets including those denominated in renminbi (RMB).
A light lunch will be served to participants prior to the meeting.
The Chatham House Rule
To enable as open a debate as possible, this event will be held under the Chatham House Rule.