In part, this communication strategy is anchored by our forward guidance on policy measures, so that everyone understands that the conditional future policy path supports convergence to the aim. It is also supported by demonstrating agility, with the central bank communicating that it stands ready to adjust its policy measures at any time to avoid undue delay in returning to the inflation goal and combat any adverse shock to inflation dynamics. It is also crucial to the successful anchoring of inflation expectations that the central bank shows it is a learning organisation that is committed in its search for the most effective policy tools in delivering its mandate. This general principle is especially relevant during phases when economic and financial conditions pose new challenges and require novel policy responses. 16 / 19  BIS central bankers' speeches  Whether through innovations such as the Outright Monetary Transactions programme during the sovereign debt crisis or through the package of innovative policy measures that have been launched in recent years, the ECB has shown itself to be creative and proactive in responding to new challenges. In common with other central banks, the ECB must always be open to new ideas and new methods, drawing from internal and external research and examples of best practice from around the world. Of course, not all new ideas withstand sustained scrutiny, but the exploration of new methods and formulations is essential for successful performance.

Enhanced coordination can also provide increased clarity on the direction of policy and reduce overreactions by the market while boosting confidence in prospects for the policies to achieve their intended outcomes. Strong fundamentals in Asia will continue to support our prospects in this more challenging environment. Following the Asian financial crisis, several emerging economies in Asia have strengthened their economic and financial fundamentals, improved their fiscal and external debt positions, and reformed their banking sectors. This has yielded tremendous payoffs. It has supported our economies to withstand the effects during this recent global financial crisis. Structural adjustments to diversify our economic structure and sources of growth have been an important part of this resilience. Asia also continues to have considerable policy flexibility to respond to external and domestic developments, although a prolonged delay in the recovery in the advanced economies will erode this policy flexibility in the future. Part 2 Asia’s development agenda also forms a key part of the efforts to firmly anchor our future growth. Several imperatives in the development of the financial sector are key in enhancing and maintaining both growth and stability in our region. First, is the further financial deepening in the Asian economies through the development of market-based and diversified channels of intermediation to support the region’s economic transformation. Since the Asian financial crisis, Asia has already made significant progress in this direction, in particular, in the progress and growth of the capital markets. Across Asia, the development of the financial system also continues to be pursued with vigor.