In this case, a central bank taking away market pressure would distort the market, not repair a market imperfection. Also, allowing the price to be determined by competitive forces may have the collateral merit of revealing market information which is certainly of great value to the central bank.
I wish to thank Director Odd Per Brekk of the IMF Regional Office for Asia and the Pacific, the conference co-organizer; Senior Fellow John Lipskyof Johns Hopkins University, our keynote speaker; President John C. Williams of the San Francisco Fed, and all program participants including our moderators, speakers, and discussants.