Monetary Policy Frameworks in Asia: Experience, Lessons, and Issues

Posted: 28 Sep 2013

Date Written: September 27, 2013


This paper reviews the history of East Asian monetary policy frameworks since 1990; describes current monetary policy frameworks, including issue of price versus financial stability for a central bank and the policies a central bank can use to manage financial stability; the monetary policy transmission mechanism based on financial linkages and financial deepening; assesses policy outcomes including inflation targeting and responses to the “Impossible Trinity”; and makes overall conclusions. The paper finds that East Asian central banks have managed inflation and growth well over the past decade, but the difficulties faced by central banks of advanced countries in the aftermath of the GFC suggests that not all problems have been solved.

Keywords: monetary policy, macroprudential policy, inflation targeting, financial stability, currency regime, capital flows, emerging economies

JEL Classification: E52, E58, F31, F32, G18

Suggested Citation

Morgan, Peter J., Monetary Policy Frameworks in Asia: Experience, Lessons, and Issues (September 27, 2013). ADBI Working Paper 435, Available at SSRN: or

Peter J. Morgan (Contact Author)

ADBI ( email )

Kasumigaseki Building 8F 3-2-5
Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008

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