by 2025. this means that asean will be a pivotal consumer market of the future. iii. seizing synergies between shanghai and singapore against this backdrop, singapore sees greater opportunities for collaboration with shanghai. as international financial centres serving different but complementary parts of the asian financial system, there is much scope for both sides to explore common interests for synergies. 11 shanghai remains at the forefront of china ’ s financial reforms. continuous strong pace of financial development and innovation is a hallmark of shanghai ’ s success. to cite a few noteworthy initiatives : ( i ) a shanghai free trade zone ( ftz ) bonds pilot scheme was recently announced18 ; ( ii ) the shanghai insurance exchange was successfully launched in june 201619 ; and ( iii ) the china internet finance association was established in shanghai in march 2016 20. these initiatives demonstrate that shanghai is a role model in pioneering financial innovation in china. going forward, i see strong potential for shanghai and singapore to synergize and collaborate in a few areas : ( i ) collaborating with shanghai authorities on free trade zone and / or pilot financial policies during their meeting in hangzhou, president xi remarked to prime minister lee that singapore could play “ a useful role ” in china ’ s newly announced ftzs. singapore could also be a strategic partner to pilot financial policies implemented in the shanghai ftz. as a key offshore rmb centre, singapore has always been supportive of china ’ s financial liberalisation and internationalisation policies. singapore financial institutions are keen to work with shanghai authorities and financial institutions. their deep international and asean experiences could contribute to effective calibration of the pilot schemes. some good examples of singapore ’ s involvement in implementing pilots include the following : in february 2014, shortly after pboc announced its support for more cross - border rmb transactions in the shanghai ftz, icbc singapore made two cross - border rmb loans to firms based here in the shanghai ftz. in october 2015, dbs china was among the first batch of banks selected to participate in the shanghai - based cross - border international payment system ( cips ). beyond banking, singapore capital market players can also work with shanghai authorities to pilot financial policies related to the asset management and securities sectors. ( ii ) belt - and - road partnerships china ’ s belt - and - road initiative ( bri ) offers another important area of collaboration between shanghai and singapore. this will also contribute to the fulfilment of china ’ s national objectives. shanghai could tap

donald l kohn : recent and prospective developments in monetary policy transparency and communications – a global perspective remarks by mr donald l kohn, vice chairman of the board of governors of the us federal reserve system, at the national association for business economics session, allied social science associations annual meeting, new orleans, louisiana, 5 january 2008. * * * i appreciate this opportunity to review recent developments in federal reserve communications. 1 as you know, the federal open market committee ( fomc ) decided last october to expand the medium - term economic forecasts of its members and to release that information to the public. i will discuss why i believe this is a very important and beneficial step, and then briefly discuss our communication efforts over the recent months of market turmoil. good communication is essential to successful central banking. it is critical to preserving the democratic accountability and public legitimacy of central banks that, for good reasons, have been granted a high degree of insulation from short - run political pressures. and good communication strengthens the effectiveness of good policy, largely because expectations are so important to the choices that households and businesses make about spending and saving and about prices and wages, as well as to the asset prices that help shape those choices. private decisions are more likely to reinforce the achievement of central bank objectives if decisionmakers understand the goals of the central bank, its evaluation of the forces bearing on the economy, and its possible responses to economic shocks. good communication is a complement to good policy, not a substitute for it. ultimately, central banks are judged on the outcomes for the economy – how well they meet their objectives. no amount of well - designed communication can counter the effects of consistently deficient analysis or poorly judged policy choices. but clear explanations and public frameworks can themselves help to promote good policy. feedback from the market is more useful to central banks when the market understands the central bank's reasoning, strategy, and objectives, even if market participants don't agree with the central bank's outlook. and the discussions and decisions on how to frame the public presentation of policy can lead to improvements in internal deliberations. among the most important criteria for judging the effectiveness of communications and transparency, then, is whether or not they impede making the best possible policy decisions. transparency should not be allowed to inhibit the free give and take and the testing of ideas at meetings that are so important to reaching good decisions. and communication must deal with the diversity of views on the policy committee ; that diversity is a strength