- traditional assets to resurrect its domestic economy. • the us fed is buying mortgage - backed securities. its balance sheet has more than tripled to us $ 3 trillion, or 19 % of gdp. • the ecb has made long - tenured loans to banks through its ltro programme and is prepared to buy sovereign bonds through its omt programme. the eurosystem ’ s balance sheet has more than doubled to €3 trillion, or 31 % of gdp. • the bank of japan is buying government bonds, but has also purchased corporate bonds and real estate investment funds. quantitative easing by the boj has amounted to 100 trillion yen, or 21 % of gdp. • the bank of england is buying gilts, and some commercial paper and corporate bonds. its asset purchase programme is now £375 billion, or 24 % of gdp. 26. central banks cannot expand their balance sheets indefinitely. the incremental benefits of further monetary easing are diminishing while the potential costs are increasing. 27. on the benefit side, it is not clear that additional monetary stimulus is an appropriate tool at this stage of the cycle. we would do well to remember the words of john maynard keynes in 1936, “ if.... money is the drink which stimulates the system to activity, we must remind ourselves that there may be several slips between the cup and the lip. ” 28. the problem is not liquidity but credit. capital - strapped banks are unwilling to lend and the private sector is unwilling to borrow, a reflection of uncertainty over fiscal policies, high indebtedness, and low income growth. 29. and we should be vigilant of the potential costs of cheap money. as market stresses subside and money multipliers recover, the abundance of liquidity could fuel a strong monetary expansion with adverse consequences for prices, which would eventually require large hikes in interest rates to counter. easy money over a prolonged period can also lead to a mispricing of risks and unsustainable asset prices, compromising both price stability and financial stability. 30. given the long lags in monetary policy, central banks must look forward now and prepare a strategy for a smooth transition back to normalcy. asian economies : dealing with desynchronised global macroeconomic cycles 31. the second key aspect in securing a return to normalcy is the adjustment of macroeconomic policies in the emerging market economies to spillovers from the advanced world. i will speak with

• the green bond grant scheme defrays the additional costs of obtaining an external review for green bonds. • foreign green bond issuers include indian renewable energy development agency as well as canadian insurer manulife. infrastructure financing is another avenue for investors looking to opportunities in asia. and singapore, as a full service asian infrastructure financing hub, is a good place to look for such opportunities. • singapore has strong connectivity to the region and has deep capabilities in project development, urban solutions, and financial and professional services. we have set up infrastructure asia : a go - to knowledge centre for infrastructure players and investors in asian infrastructure. • the office will facilitate infrastructure investment and financing, availing investors to infrastructure investment opportunities. singapore is developing two significant initiatives to facilitate the take - off of asian infrastructure financing. first, an infrastructure debt distribution facility to help crowd - in institutional investors. • we are working with industry partners to securitise a pool of brownfield regional project finance loans from banks into a collaterialised loan obligation that institutional investors, including insurance companies and pension funds, can invest in. second, creation of investment benchmarks to make infrastructure an investable asset class. • this will allow investors to compare the returns of privately - held infrastructure debt and equity against other asset classes. http : / / www. imas. gov. sg / news - and - publications / speeches - and - monetary - policy - statem... 21 - 07 - 18 connecting global markets supporting asias growth page 7 of 7 let me conclude. the asian growth story will dominate the investment agenda in the next decade. capital and investment will continue to flow into asia. as an international financial centre, singapore ’ s role is to connect global investors to asia, and to bring asian opportunities to global investors. and that is why nomura has gathered you here. i wish you a stimulating forum, fruitful investments, and an enjoyable stay. thank you. last modified on 05 / 06 / 2018 copyright © 2018 monetary authority of singapore http : / / www. imas. gov. sg / news - and - publications / speeches - and - monetary - policy - statem... 21 - 07 - 18