by foreign - funded financial institutions in shanghai. 5. we will support the establishment of a cross - region platform for financial cooperation in the yangtze river delta region, enhance the connectivity of financial infrastructure, and promote the integration of financial businesses across the region. 6. we will support the development of the “ g60 science and technology innovation corridor ” driven by the building of shanghai into a science and technology innovation center, promote the application of shanghai ’ s financial opening - up innovative policies to the corridor, and improve financial services for sci - tech innovation enterprises. 7. we will support the shanghai commercial paper exchange expanding in the yangtze river delta region the use of commercial papers for accounts receivables, and launching the pilot program of expanding the “ discount connect ” business to wider regions. 8. we will support the pilot program in shanghai lifting the foreign ownership cap in securities firms and fund management companies, and expanding the business scope for foreign - funded financial institutions. we pledge full support for the development of the star market. 9. we will further enhance the functions of the pbc shanghai head office. third, the core of shanghai international financial center development is to make shanghai the global center of rmb - denominated financial asset allocation and risk management. during the visit to shanghai in 2018, general secretary xi jinping noted that shanghai should strive to strengthen its capacity of allocating global resources in an effort to comprehensively enhance the influence and competitiveness of shanghai among cities in the world. vice premier liu he stressed in his speech just now that shanghai international financial center development should serve the overall picture of national strategy and national economic development, promote belt and road initiative and accelerate the economic integration in the yangtze river delta. based on my working experience, i think shanghai is bound to be an international financial center based on rmb - denominated assets. therefore, efforts will be focused on developing the 2 / 4 bis central bankers'speeches following “ five centers ” to further accelerate the development of shanghai into an international financial center based on rmb - denonminated asset management and financial market. 1. developing shanghai into a center of rmb - denominated financial asset allocation. with rmbdenominated assets incorporated into msci index, bloomberg barclay global aggregate index and other major equity and bond indexes widely used across the world, global asset managers, passive and index - oriented ones in particular, will increase allocation of rmb - denominated equity and bond assets. up to

instead, i believe we should describe how we will respond to the data ; that is, we should describe a reaction function. i frequently consider such reaction functions as i think about policy. these are typically taylor - like rules, named for stanford university economist john see charles i plosser, “ the benefits of systematic monetary policy, ” speech given to the national association for business economics, washington economic policy conference, washington, d. c. ( march 3, 2008 ). finn e kydland and edward c prescott, “ rules rather than discretion : the inconsistency of optimal plans, ” journal of political economy, 85 ( june 1977 ), pp. 473 – 491. bis central bankers ’ speeches taylor who first proposed them in the early 1990s. these policy rules typically call for the targeted funds rate to respond to deviations of inflation from some desired goal and to deviations of output from some measure of potential – sometimes referred to as economic “ slack ” or the “ gap. ” sometimes such gaps are translated into deviations from full employment. such robust rules recognize that data are measured imprecisely and are subject to revision. moreover, they have been shown to perform well in a variety of models and conditions. i believe these robust rules can be useful guideposts for policymakers and the public in assessing the stance of monetary policy and its expected path. communicating about such guideposts would enhance transparency and help make policy more systematic. however, i don ’ t believe that we need to follow rules mechanically. judgment will always be required. yet, policymakers and the public should be very cautious when they call for policy rates to deviate in significant ways from these guideposts. making such judgments should require careful analysis, and the justification for deviating from the guidelines should be clearly communicated to the markets and to the public. thus, policymakers will still be able to exercise discretion, but using rules as guideposts will enhance transparency and effective communication. improving transparency this leads me to my third important principle for monetary policy – communicating in a clear and transparent way. in recent speeches, i have proposed that the fomc could improve communication and transparency by publishing a more comprehensive monetary policy report on a regular basis, perhaps quarterly. 3 this report could incorporate a discussion of such robust systematic rules i referred to a moment ago in its description of the underlying policy framework. the rules could serve as a benchmark for the current stance of policy and the expected path of