The collapse in asset price bubbles at the onset of the recent global financial crisis not only destroyed balance sheets of banks, non-bank financial institutions, non-financial companies as well as households, but also impaired the transmission mechanism of monetary policy. As monetary policy actions are transmitted to the real variables through financial markets, a better understanding on the links between asset prices and monetary policy is crucial for the effective conduct of monetary policy. The Seminar leveraged on the findings of the SEACEN research project on “Asset Price Bubbles and Challenges to Central Banks” as well as lessons learnt from the advanced economies.

Objectives: At the end of the Seminar, participants were able to: (i) analyse macroeconomic implications of asset price bubbles; (ii) evaluate methodologies to identify asset price bubbles based on international research and practical experiences; and (iii) assess appropriate policy responses to asset price inflation.

Resource Persons: The faculty of resource persons were drawn the Bank for International Settlements (BIS), Bank of Thailand, Bank of Japan, Bank of Mongolia, The Bank of Korea and SEACEN Centre.

Target Group: 29 participants representing 11 institutions of 11 economies of the Asia-Pacific region attended the Seminar and comprised mainly central bank staff involved in analysing and formulating monetary policy, financial policy and financial stability.