more robust quality adjustment between the obsolete and replacement models that may [UNK] in technical specifications. 17. in april 2018, professor aurobindo ghosh, in collaboration with researchers at the behavioural insights team in singapore and the economic policy group, mas conducted two randomised experiments with a view to improving the framing of inflation expectation questions in the survey used to form the sindex measure. this work found that providing respondents with current information on inflation and other key macroeconomic variables helped them better contextualise and anchor their responses. these results have guided changes introduced to questions in the survey, which have gone some way towards reducing the commonly observed upwards bias in surveyed consumer inflation expectations. conclusion 18. to conclude, inflation dynamics and expectations are important underpinnings of the macroeconomic dynamics confronting the region in the period ahead. the organisations represented here are at the forefront of analysis into the various aspects of these developments. i am sure there will be interesting insights and perspectives from this seminar. [ 1 ] see for example, crust, e, daly, m, and hobijn, b ( 2020 ), “ the illusion of wage growth ”, federal reserve bank of san francisco, economic letters, 2020 - 26. [ 2 ] international monetary fund ( 2021 ), “ chapter 1. global prospects and policies ”, world economic outlook : managing divergent recoveries, april. [ 3 ] see for example : shiller, r. j. ( 1981 ), “ do stock prices move too much to be justified by subsequent changes in dividends? ”, american economic review, vol. 71 ( 3 ), pp. 421 – 436 ; akerlof, g. a. ( 1970 ), “ the market for ‘ lemons ’ : quality uncertainty and the market mechanism ”, the quarterly journal of economics, vol. 84 ( 3 ), pp. 488 – 500. [ 4 ] akerlof, g. a. and shiller, r. j. ( 2009 ), animal spirits, princeton university press. [ 5 ] gennaioli, n. and shleifer, a. ( 2018 ), a crisis of beliefs, princeton university press. [ 6 ] representativeness entails a judgement error of overestimating the likelihood of representative attributes which appear with higher relative frequency in a class. see reference in note 4. [ 7 ] agarwal, s. and yeung, b, ( 2021 ), “ inflation expectations and household

has therefore also adopted fiscal measures such as stamp duties on buyers and sellers of properties as part of the macroprudential toolkit. • the seller ’ s stamp duty ranges from 4 % to 16 %, while the buyer ’ s stamp duty ranges from 3 % to 18 %. • these are essentially transactions taxes that aim to curb the speculative flipping of properties. 38 third, it is important to draw a distinction between macroprudential policies and capital flow management measures. capital flow measures are applied “ at the gate ” seeking to regulate flows into and out of the economy ; macroprudential measures are applied “ inside the house ” targeted at sectors where financial vulnerabilities are building up. • capital flow measures are highly distortionary and pose long - term costs to the economy. clearly, such measures should not take the place of needed macroeconomic adjustments. • capital flow measures may be warranted under extreme circumstances to safeguard financial stability. but as the imf puts it, their implementation should be “ targeted, transparent, and generally temporary ”. 39 asian economies have deployed macroprudential policies to deal with financial imbalances, to a greater extent than other economies. so far, the results have not been bad. they have largely tempered the credit cycle and the pace of asset price increases, while generally maintaining price and output stability. a synthesis? 40 let me bring together the main strands of my remarks. the view that central banks ought to pay due consideration to financial stability is gathering momentum. i have described two alternative approaches to the status quo to achieving this : • the second approach incorporates financial stability considerations in the setting of monetary policy ; and • the third actively uses macroprudential policy to help secure financial stability. 41 perhaps the differences between the two approaches are exaggerated. both approaches require the central bank to integrate monetary policy functions effectively with prudential policies. • in the second approach, strong supervisory and regulatory policies have to be in place even as monetary policy adjusts the level of risk - taking in the economy. • in the third approach, monetary policy must be appropriately calibrated to the economy for macroprudential measures to effectively target specific areas of imbalances. bis central bankers ’ speeches 42 in practice, the difference between the two approaches is likely to be one of degree and emphasis rather than of fundamental principle. central banks will choose the most appropriate combination of the two approaches, taking into account the structure of their economies and the nature of the threats