Setting Monetary Policy in East Asia: Goals, Developments and Institutions

The Asian crisis represented a watershed in monetary policy-making in east Asia. Suddenly gone, in many cases, was the guiding principle of stability of the currency against the US dollar. Suddenly gone, in some cases, was the senior management of the central bank itself. New goals, and new means to achieve them, were needed. In a number of Asian central banks, new leaders faced the challenge of setting new goals.