Exchange rate losing significance in Asian monetary policy, BIS paper argues

Increased financial internationalisation reduces the effectiveness of sterilised intervention, as the international policy trilemma becomes more relevant – meaning Asian countries who have used the tactic to good effect in the past will find its efficacy reducing as their financial and goods markets become more integrated, according to a working paper from the Bank for International Settlements.

In Globalisation, pass-through and the optimal policy response to exchange rates, Michael Devereux of