alan bollard : economic surveillance after the crisis – reflections from a small full service central bank speech by dr alan bollard, governor of the reserve bank of new zealand, and mr enzo cassino, acting manager, financial markets research, to the sim kee boon institute conference on financial economics, singapore, 5 may 2011. the speech was delivered by dr john mcdermott, assistant governor of the reserve bank of new zealand. * * * introduction nearly four years after it began, the global financial crisis continues to impact the changing behaviour and practices of the world ’ s central banks. in particular, it has affected the way central banks monitor and analyse economic conditions to formulate monetary and financial stability policies. we can describe this monitoring and analysis process as “ economic surveillance ”. economic surveillance refers to all the various channels we use to obtain information about the financial system and the economy to support our decision - making. this monitoring covers both the global and domestic economies. it also covers a wide spectrum of sources and methods, including statistics, financial market data, the functioning of the payments and liquidity infrastructure, external commentaries, and intelligence gathered from contacts in the financial and business sectors. collecting, analysing and interpreting this range of data requires a wide range of skills and expertise in central banks, including macroeconomics, financial modelling and market liaison. the financial crisis has led to some changes in the way we do economic surveillance and presents new challenges and opportunities for central banks. our perspective on this task at the reserve bank of new zealand comes from being a small “ full service ” central bank responsible for both monetary policy setting and supervising the financial system. our view is also impacted by new zealand being a small open economy. this makes us a price taker in the markets for many tradeable goods and also exposes us to the impact of economic and financial shocks in larger economies. it also makes it more difficult for us to set standards of regulatory compliance for our financial sector in isolation and independently of regulatory developments in larger economies. surveillance before the crisis to better understand the impact of the crisis on central banks ’ behaviour, it is useful to start by describing how monetary authorities behaved before the crisis. in the pre - crisis world, monetary policy setters were often able to inform their decisions using a number of reasonably reliable empirical correlations between real or financial variables that had been historically quite stable. while structural change and the breakdown of empirical relationships still commonly occurred at times, many empirical regularities appeared to be

studies and provide practical guidance on modalities to scale up blended finance. mas and the de nederlandsche bank ( dnb ) will lead this initiative. i will share more details in my remarks this afternoon before the ngfs discussion panels at this pavilion. 2 / 4 bis - central bankers'speeches the glasgow financial alliance for net zero asia - pacific network will launch an initiative to develop guidance for financial institutions on how they can facilitate the managed phase - out of coal power generation in the asia pacific. mas and the asian development bank will participate in this initiative. second strategy - carbon markets to channel financing towards carbon abatement and removal projects. many entities find it difficult to eliminate their emissions or to even reduce them as quickly as they would like. high quality carbon credits generated by emission reduction and removal projects allow such entities to offset the emissions they cannot get rid of while providing financing for these projects that would otherwise not get off the ground. a well - functioning carbon trading ecosystem is particularly relevant to asia's transition effort. the market for voluntary carbon credits is huge. unfortunately, differences in carbon accounting and credit recognition practices across jurisdictions have led to carbon credits being treated with a degree of skepticism. to build an efficient and trusted carbon market, we will need better and verifiable abatement data, harmonisation in carbon accounting practices, and interoperability between the voluntary and compliance carbon markets. singapore is well - positioned to be a carbon services and trading hub. we have sound infrastructure, good governance, and a premium on trust – critical ingredients for a marketplace. we are located at the heart of southeast asia which is fertile ground to harness the potential of nature - based solutions for carbon sequestration. southeast asia holds more than one - third of the world's mangroves and has about 120 million hectares of land suitable for re - forestation. we are strengthening the carbon credit value - chain by growing project development capabilities : certify and validate project design, and monitor and verify project outcomes. third strategy – good - quality data to support transition finance. credible and comparable data is foundational for the climate agenda. data on carbon stocks, emissions profiles of projects, and historical deal data can provide the market with a proper view of climate - related risks. good - quality data is key to robust sustainability reporting, combating greenwashing, and enabling investors to make effective esg - informed decisions. good - quality data enables solutions such as blended finance and forms the backbone