example. the measure in itself is not particularly binding ; it is more significant as a pre - emptive move designed to signal policy resolve in mitigating possible build - up of real estate bubbles. ongoing financial sector reform will also build financial sector resiliency. thailand ’ s financial master plan, now in its second phase, continues, and focuses on liberalization through increased competition, raising efficiency, and strengthening the financial infrastructure. on the third issue, global current account imbalances remain problematic, as they did before the global crisis. as long as structural problems remain in the us and euro economies and china retains its present economic policies, it is likely global imbalances will persist into the medium term with the risk of a disruptive correction down the road. such a correction may be particularly painful for small open economies. firmer policy coordination between large economies is needed to ensure a smooth resolution of global imbalances. ladies and gentlemen, i am close to the conclusion of my talk today. i have given you my assessment of the global economy, my thoughts on our policy options going forward, and how monetary policy should be poised, pre - emptive and perceptive. one theme i emphasized today was the global environment of fluid capital and its attendant risks. as a point of departure, let me address how you, as the investor, can thrive in such a world of risk while investing in thailand. there is no easy answer. different investment strategies face different risks. investors themselves are the most qualified for evaluating and managing their own risk exposures given their investment opportunities. however, i can tell you that the bank of thailand will take care of the risks to the system, by maintaining price stability in the long - run while mitigating economic cycles in the short - run. our flexible inflation - targeting framework targets core inflation between 0. 5 and 3. 0 percent while taking into account economic growth. and in this framework, the exchange rate is a managed - float and plays a supporting role as an adjustor against external shocks, leaving bis central bankers ’ speeches room to the interest rate as the main instrument of price stability. the managed - float is based on three elements : volatility, competitiveness, and fundamentals. volatility is managed so as to limit disruption to the private sector in the short - run. competitiveness is maintained by containing excessive currency movement relative to the region. and most importantly, fundamentals must be allowed to determine exchange rate movements in the long -

i am sure there will be more central banks both in asia and outside looking at asian bonds at the international level because of this initiative. but in the nest step, the asian bond fund will extend the investment into the various local bond markets in local currencies. the fund will be calling on asian countries. it will be ready to invest, but only if the market builds up the right conditions, and removes all the impediments. and you know that until the last impediment is removed, the market will not be attractive to foreign investors. and since these impediments often extend across many government departments and functions, as well as the judicial system, so only the strongest political commitment can remove all of them. so will the political commitment come forward? with money waiting at the door, and with peer pressure and available assistance within asia, i think there is a good chance that it will. someone asked me earlier how much of the asian international reserves will have to go into these asian bond funds. well, i hope not a lot. it is not the job of the authorities to replace the market. what the authorities try to do is simply to act as a catalyst. in the long run, private money in asia should find its own way to invest in asia, whether it is savings from insurance companies in japan, mutual funds in hong kong or pension funds in singapore investing in corporate bonds all over asia. will there be enough opportunity for investing in asia? certainly! many asian countries still have very young populations. half of thais are under the age of 30. demand for construction, household products and infrastructure will be strong for many decades. there is ample opportunity for asian savings to find asian investments.