18 See Janet L. Yellen, “A Challenging Decade and a Question for the Future,” Herbert Stein Memorial Lecture,  National Economists Club, Washington, D.C., October 20, 2017. In a recent set of simulations using traditional monetary policy strategies based on simple policy rules, Federal Reserve Board economists estimate that the zero lower bound would bind with significantly higher frequencies than in previous analyses. See Michael T. Kiley and John M. Roberts, “Monetary Policy in a Low Interest Rate World,” Brookings Papers on Economic Activity Conference Drafts, Washington, D.C., March 23–24, 2017. 19 She acknowledged, however, that the simulations on which her analysis was based could overstate the FOMC’s  current ability to respond to a recession, given little scope to cut the federal funds rate and the possibility that stimulus associated with forward guidance and asset purchases could be reduced with long-term rates already quite low. See Janet L. Yellen, “ The Federal Reserve’s Monetary Policy Toolkit: Past, Present and Future,” opening remarks at the Federal Reserve Bank of Kansas City’s Economic Policy Symposium, Designing Resilient Monetary Policy Frameworks for the Future, Jackson Hole, Wyoming, August 26, 2016. 20 Most participants did not indicate support for using the balance sheet as an active tool in other situations or for  other purposes. See Minutes of the Federal Open Market Committee, November 1-2, 2016. 21 Some surveys of the numerous studies of central bank bond purchase programs include: Joseph E. Gagnon,  “Quantitative Easing: An Underappreciated Success,” Peterson Institution for International Economics Policy Brief, no.

The RQDII scheme will allow qualified domestic institutional investors to purchase RMB-denominated securities abroad, which was recently approved. In Myanmar, one of the most under-banked countries with bank loans amounting to just one-fifth of GDP6, the issuance of nine licences to foreign banks (including two Singapore banks) will help to bring much-needed capital for economic development, financial services and technology transfer. These are but two examples of the blossoming of financial services in Asia – whether through cross-border channels, overseas expansion or domestic liberalisation – which will integrate the region financially. 9. Financial integration brings clear benefits to both users and providers of financial services. It leads to more effective mobilisation of savings from surplus countries to countries that need capital, and improve the efficiency of investment allocation. A well-developed and competitive financial sector can thus be a catalyst to spur and sustain economic growth. The opening up of the financial sector to foreign participation adds to the sector’s development as foreign financial institutions also promote competition and innovation, and create the urgency for local institutions to upgrade capabilities. This has been our experience in Singapore. 10. International regulatory reforms are adding impetus to market integration. Let me cite two examples. First, as new Basel 3 capital and liquidity rules come into force, banks are seeking ways to manage their capital and liquidity more efficiently.