asia economic policy conference. okina ( k. ), shirakawa ( m. ) and shiratsuka ( s. ) “ the asset price bubble and monetary policy : japan ’ s experience in the late 1980s and the lessons ”, monetary and economic studies 25, no. s – 1 : 395 – 450. bank of japan institute for monetary and economic studies. bis central bankers ’ speeches shirakawa ( m. ) “ revisiting the philosophy behind central bank policy ”, speech at the economic club in new york. shirakawa ( m. ) “ advanced and emerging economies – two - speed recovery – ”, speech at the bauhinia distinguished talk in hong kong sar. bis central bankers ’ speeches

no single indicator which can identify emerging imbalances, let alone unsustainable global imbalances. a sufficiently flexible policy framework which can adapt to rapidly changing economic and bis central bankers ’ speeches financial conditions is required. the process through which crises unfold is unique for each crisis. we must learn from past experience, but strategies for the last war do not assure success in future battles. keeping an open mind is important. chart 12 financial account of emerging countries as policymakers work to develop a framework for identifying and dealing with unsustainable global imbalances in a rapidly evolving economic and financial environment, they need to be cognizant of three key elements : two longer - term trends and one element unique to the current environment. first, though needless to say, we are experiencing a further acceleration in economic and financial globalisation. in addition, due to technological advances, the interlinkages between financial markets and among market participants are becoming increasingly complex. shocks in one part of the world will swiftly spillover to other parts and often through unexpected channels. the effects of the risk - taking channel of monetary policy can be larger and more widespread than in the past. search - for - yield behaviour by global investors is one such example. second, the share of emerging market countries in the world economy is increasing. their share in the world economy which was 20 % in 1990 and 2000 has increased to 31 % in 2009 on a current price basis, and they are expected to account for seven - tenths of global economic growth in 2010. emerging economies have become the drivers of global growth, and consequently their responsibilities as members of the global community have increased. for example, it needs to be recognised that the implications of inflexible exchange rates in major emerging economies on the global economy have become larger. the perspective of an orderly structural adjustment process for domestic industries may warrant a gradual shift from fixed exchange rates to a more flexible exchange rate system and a controlled appreciation of the home currency. but, at the same time, policymakers in emerging economies need to recognise that such a policy both hampers the flexible implementation of domestic macroeconomic policies including monetary policy, and exports the cost of the adjustment to other countries. if other countries follow and take similar measures to delay the appreciation of their currencies, the impact on economies which allow flexible exchange rate movements could be magnified. bis central bankers ’ speeches third, we are now in the unique situation where some advanced economies are recovering from the