We are indebted to academic research for proving that the attempts to exploit such trade-offs eventually only lead to higher inflation. It therefore re-established a firm basis for the concept of the long-term neutrality of money. Indeed, this is a perfect example of an academic insight that has become a deep-seated principle of central banking around the world.
The implications of this change can be summarized by noting that Japan is the largest shareholder in the Asian Development Bank, and by tradition appoints its head; that the formation of an Asian Monetary Fund during the Asian crisis in 1998 was not strongly supported by China; and that China will no doubt want to play a greater role in any future regional institutions than it does in the ADB.