Since at least the Great Financial Crisis, authorities around the world have increasingly relied on macroprudential policy to help secure financial stability and complement monetary policy as an integral element of a broader macro-financial stability framework. In today's interconnected global financial system, policy actions taken by the major advanced economies can have spillovers on the rest of the world through their impact on capital flows and exchange rates, potentially generating vulnerabilities across borders. Conversely, in emerging market economies, macroprudential policy as well as foreign exchange intervention and/or capital flow management policy can help mitigate the corresponding impact. This can in turn generate spillbacks on advanced economies - spillbacks that have become more sizeable as the emerging market economies' heft in the world has grown. Yet little is known about these interactions.The contents of this book are based on a conference held on 26-28 May 2021 and jointly hosted by the Monetary Authority of Singapore (MAS) and the Bank for International Settlements (BIS). It aims to contribute to existing literature on macro-financial policymaking by providing an overall conceptual framework and documenting the latest global trends and country experiences. In particular, it highlights the role of international spillovers and spillbacks, paying particular attention to emerging market economies. This book is essential reading for academics, graduate students and economic professionals. It can also serve as a handbook for policymakers at central banks, regulatory authorities and other government agencies tasked with designing and implementing macroprudential or more generally macro-financial stability policies. The book will also be of interest to researchers at international organisations.

Increased integration of financial markets has led to many tangible economic benefits in Asia and around the world; yet, greater financial globalization has also exposed emerging economies to the vagaries of international capital flows. Harnessing the benefits of financial globalization while mitigating the risks posed by procyclical financial flows is a major preoccupation that has required central bankers in Asia and around the world to extend their focus beyond price and exchange rate stability to include the stability and efficiency of the financial system. This expanded domain of concern for central bankers has brought new, often complex, policy challenges. Since 2014, the Monetary Authority of Singapore, Asian Bureau of Finance and Economic Research, University of Chicago Booth Business School, and National University of Singapore Business School have organised the Asian Monetary Policy Forum (AMPF) annually, bringing together prominent academics, policymakers and private sector economists to deliberate pressing monetary policy issues particularly relevant for Asian countries. The aim is to draw lessons from experience for the benefit of policymakers in the region and beyond. This volume includes selected AMPF speeches and commissioned papers from 2014 to 2020. Based on the latest academic research in economics and finance and written for a more general audience, the chapters cover a range of topics that have assumed central importance in the global monetary and financial system over the past twenty years. These include the efficacy of traditional monetary policy frameworks against the backdrop of synchronised global financial flows, the challenges presented by the US dollar dominance in the international trade and monetary systems, and the optimality of central banks' use of a wider set of policy instruments within an integrated policy framework to attain price and financial stability.