At the same time, academics have shown how the short-term output costs of price stability can be kept down if central  BIS Review 59/2007  1  banks adopt credible and transparent targets. I will mention here the New-Keynesian theory of price determination, which convincingly relates current inflation to future expected inflation, providing a yardstick for monetary policy actions and communication. In the ECB Governing Council, we are proud that we have been able to continue anchoring inflation expectations at levels consistent with our definition of price stability. But there is no room for complacency. The recent inflation success story and the central bank changes behind it need continuing social support. The public must have a clear-cut idea of what inflation means for their future income and job prospects. But while people appreciate the benefits of low inflation, differing national situations and economic conditions can alter preferences over time and from country to country. Let’s go back to monetary unification in Europe in the 90’s. We could argue that European citizens were not exactly clamouring at that time for a fully independent central bank tasked with maintaining price stability for the euro zone as a whole. What is more, some critics viewed the fact that would-be EMU members had to meet nominal convergence criteria as a costly economic sacrifice that was justifiable only on political grounds, if at all. Yet in some countries, and certainly in Spain, countering inflation with tight monetary and fiscal policies led to a virtuous circle, once convergence became credible.
• For instance, the debut of project bond issuance by PT Paiton, Indonesia’s second-largest independent power producer, reflects growing demand for Asian infrastructure debt. Singapore is well positioned as a gateway to investment opportunities in Asia. •  We offer a world class financial centre, with a sound regulatory framework and business-friendly environment. •  With its pan-Asian reach, Singapore is an ideal location for investors to set up base and tap on opportunities in the region. Let me highlight two things Singapore provides to connect global investors to Asia:  •  first, a compelling asset management ecosystem; and  http://www.imas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statem... 21-07-18  Connecting Global Markets Supporting Asias Growth  •  Page 4 of 7  second, a treasury centre with a comprehensive suite of risk management solutions. Singapore is a leading asset management hub for institutional investors and fund managers to access pan-Asian opportunities. •  Assets under management in Singapore have grown by an average 15% each year over the last five years, reaching $ trillion in 2016. • About 80% of funds are sourced from outside Singapore. • Two-thirds are invested in Asia. •  Interestingly, we have seen faster growth in alternative AUM (17%) compared to traditional AUM (3%). •  This points to the growing pool of investors setting up in Singapore to access private market opportunities in Asia. We are taking three major initiatives to further strengthen the asset management ecosystem further.