Monetary policy in East Asia : implementation matters

When monetary policy was still largely confined to the setting of interest rates and conventional open market operations, monetary policy implementation could be considered a technical issue beyond the scope for academic analysis. This has changed with the advent of the so-called unconventional monetary policies such as Quantitative Easing (QE). The exact way of conducting such policies has a huge influence not only on financial markets, but also on the real economy and on fiscal affairs. Meanwhile, central bank communication has proven to be a major factor for the efficiency of monetary policy paths, and in this field, too, success depends to a large degree on proper implementation.