Monetary policy coordination a hot topic

November 18, 2011 | 15:39

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Specialists, researchers, policy makers and regulators from government agencies of Vietnam, Indonesia and the Philippines met in Hanoi today for a seminar on monetary policy coordination with other macroeconomic policies in a challenging global economic environment.

Deputy governor of the State Bank of Vietnam Nguyen Toan Thang and Asian Development Bank (ADB) country director for Vietnam Tomoyuki Kimura opened the seminar which acquired added importance because it was held at a time when significant breakthroughs are expected in a wide range of initiatives for sustainable economic development in a very challenging context of global economy.

“Closer coordination among monetary policy and other macroeconomic policies is critical to ensuring macroeconomic stability. Restoring macroeconomic stability is the immediate priority, but addressing root causes of high inflation requires greater efforts on structural reforms,” said Kimura.

Researchers from international universities in the UK and Uzbekistan and Vietnam’s Banking Academy and experts from the central banks of Indonesia and the Philippines shared views and best practices in managing macroeconomic stability and capital flows as well as in conducting of monetary policy in the developing and emerging markets.

The seminar was also a great opportunity for participants to discuss and review the roles and make recommendations on further improvements of monetary policy and broader structural reforms needed for maintaining macroeconomic stability in Vietnam.

According to participants, in such a challenging global economic context, the government was rightly commended for making swift and strong policy responses that allowed Vietnam to weather the global crises better than many other countries.

However, as the economy regained momentum, inflation and the pressure on the dong have re-emerged as central challenges to macroeconomic stability.