Name: TIACOE Research Seminar: Dr Dora Xia
Start: 2025-11-12T12:30:00+08:00
End: 2025-11-12T13:30:00+08:00
Location: Asia School of Business (ASB) Academic

This is a TIACOE research seminar at the Asia School of Business, featuring Dr Dora Xia from the Bank for International Settlements.
About this Event

We are thrilled to invite you to the upcoming Research Seminar at the Asia School of Business, featuring Dr Dora Xia.

Seminar Title: Integrating Balance Sheet Policy Into Monetary Policy Conditions.

Event Details

📅 Date: 12 November 2025

⏰ Time: 12:30 PM – 1:30 PM

📍 Venue: Level 2, CR-W2-03, Asia School of Business

📝 Register now!

About the speaker:

Dr. Fan Dora Xia is a Principal Economist at the Bank for International Settlements (BIS) Representative Office for Asia and the Pacific, where she leads research on financial markets, monetary policy, and sustainable finance. She joined the BIS in 2016 after serving as a Strategist in Global Rates and FX Research at Bank of America Merrill Lynch. Dr. Xia holds a Ph.D. in Economics and an M.Sc. in Physics from the University of California, San Diego, and a B.Sc. (First Class Honours) in Physics from Hong Kong Baptist University. Her work on monetary policy and financial cycles has been widely published in leading journals such as the Journal of Money, Credit and Banking and Journal of Applied Econometrics, and cited by central banks, policymakers, and major media outlets including the Financial Times and Reuters.

Abstract:

This paper introduces a new Monetary Policy Condition Index (MCI) that integrates conventional and unconventional monetary policy tools into a unified measure. The MCI is a weighted average of short-term interest rate and central bank balance sheet size, improving upon the shadow rate by capturing balance sheet policy effects away from the effective lower bound. We estimate the MCI's weight and its dynamic relationships with output, inflation and financial conditions using a Bayesian Vector Autoregression (BVAR) framework. Results suggest that large balance sheet policies have exerted a significant accommodative influence on monetary policy conditions, including away from the effective lower bound. Through historical decomposition and counterfactual exercises, the MCI provides new insights into unconventional policy's effectiveness and unintended consequences. The framework can flexibly accommodate numerous extensions, including possibly a higher neutral balance sheet under ample reserve system.

We look forward to your participation in this insightful research seminar.