to excessive volatility in the exchange rate movements beyond implied by fundamentals. dual intervention is one of strategy to smooth out volatility. but in some cases, measures of capital flows management are needed. for indonesia, the policy on capital flows management is guided with three principles. first, the objective is to help mitigate the negative impacts of short - term volatility in capital flows to instability in exchange rate as well as overall monetary and financial system. second, they are targeted to short - term and speculative capital flows since we welcome those flows that are medium - longer term that benefits the economy. and third, the measures are consistent with our broad principle of maintaining free foreign exchange system. they are temporary, i. e. the measures are strengthened when too much capital inflows and relaxed when too much capital outflows, and do not differentiated to both domestic and international investors. followings provide clear examples. during heavy capital inflows from the ump easing, in 2010 we introduced six month holding period for transactions in the central bank bills and imposed a maximum of 30 % capital to the short - term off - shore borrowings of the banks. but following the fed announcement of planned tapering in 2013 we relaxed the holding period for central bank bills to one month and expanded a number of transactions that are excluded from the calculation on off - shore borrowing of the banks. we view that these measures help in dampening the short - term and volatile capital flows, and thus are consistent with the objective of managing financial stability. iii. assessing the macroprudential measures as underlined before, the interest rate transmission mechanism of monetary policy is not always smooth and fully effective in a country where financial market is not yet developed such as indonesia. other channels of monetary transmissions must be deployed, including bis central bankers ’ speeches the lending channel. this is where macroprudential measures play key role, including in smoothing out the procyclicality nature of bank lending behavior. thus, both the objectives of maintaining monetary and financial system stability are taken into account when we design macroprudential measures. in indonesia, the formulation of macroprudential measures is done as follows. we develop some methodologies to assess some sort of optimal lending growth of the banks, including what we call non - accelerating inflation lending growth model. we apply the model to aggregate lending growth as well as lending growth to each bank, certain types of lending ( consumption, working capital, and investment ) and

that high and rising federal debt can, in the longer term, restrain private investment and, thereby, reduce productivity and overall economic growth. putting the federal budget on a sustainable path would aid the long - term vigor of the u. s. economy and help ensure 2 / 3 bis central bankers'speeches that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens. i will conclude with a few words on the technical implementation of monetary policy. in january, the fomc made the key decision to continue to implement monetary policy in an ample - reserves regime. in such a regime, we will continue to control the federal funds rate primarily by setting our administered rates, not through frequent interventions to actively manage the supply of reserves. in the transition to the efficient and effective level of reserves in this regime, we slowed the gradual decline in our balance sheet in may, and stopped it in july. in response to the funding pressures in money markets that emerged in mid - september, we decided to maintain a level of reserves at or above the level that prevailed in early september. to achieve this level of reserves, we announced in mid - october that we would purchase treasury bills at least into the second quarter of next year and would continue temporary open market operations at least through january. these actions are purely technical measures to support the effective implementation of monetary policy as we continue to learn about the appropriate level of reserves. they do not represent a change in the stance of monetary policy. thank you. i would be pleased to take your questions. 1 congressional budget office ( 2019 ), the 2019 long - term budget outlook ( pdf ) ( washington : cbo, june ). 3 / 3 bis central bankers'speeches