Impact on real economy of significant reverse movements over a relatively short period could be destabilizing with attendant serious welfare implications. We in Asia are acutely aware of these aspects. Recent sharp upward movements in oil prices in an era of heightened uncertainties is yet another reason for policy makers in Asia to be vigilant.
These factors have since proven to be key contributors to the current, worldwide turmoil in financial markets. A third contributing factor, which we didn't foresee, has been the extent to which financial markets had expanded without proper support structures, like a house built on sand. I'll have more to say on this point a bit later in my remarks.