Strong capital inflows into Asia pose a challenge to monetary management. While some appreciation of currencies of countries enjoying current account surplus is evident, the macro policy may need to be predominantly governed by the compulsions of domestic supply and demand considerations.
2  BIS central bankers’ speeches  Milesi-Ferretti, Gian Maria (2009), “A $ Question,” VOXEU (January 28 2009). http://voxeu.org/article/2-trillion-question. Obstfeld, Maurice, Jay C. Shambaugh and Alan M. Taylor (2010), “Financial Stability, the Trilemma and International Reserves,” American Economic Journal: Macroeconomics 2(2), 57–94. BIS central bankers’ speeches  3