so from a macroprudential perspecti perspective i think it's important also to keep in mind that it isdifferent from exchange rate management. if there are significant capital in flows into asia as we saw right after the 2008 crisis the mac macroprudential policy would be the useful tool to use to address exposure of the financial system as a whole the real estate prices or the some other asset class. now in the event of capital outflows, macrocrucial policy could be loosened in the event that buffers have already been built. if there are no buffers left -- if buffers have not been built then it's important to make sure macroprudential policy remains where the vulnerabilities or the exposure of the financial sector remain manageable. this might be a long-winded way of saying that i think asia has a sound exchange rate policy. it's a much more flexible exchange rate regime to absorb shocks. most central banks have a framework for macroprudential supervision and asia has led the world in terms of implementing macroprudential policies to address systemic risks in the financial system. >>

from a macroprudential policy perspective and for those who don't know the term, macroprudential policy, i think the imf we forget sometimes people don't know these terms. but it's essentially not supervision of individual financial institutions but supervision of the financial system from an aggregate perspective. you look at the financial system and you see where are the risks coming so, you know, it may be that individually financial institutions may not be at risk. but on aggregate, if there's significant exposure to the real estate sector, for example, that could pose systemic risk. from a macro prudential perspective, i think it's important also to keep in mind that it is different from exchange rate management. macro prudential policy is to address systemic risk in the financial system. if there are significant capital inflows into asia as we saw right after the 2008 crisis, then macro prudential policy would be the useful tool to use to address exposure of the financial system as a whole, to real estate prices or to some other asset class. now, in the event of capital outflows,

no buffers left -- if the buffers have not been built, then it's important to make sure that macroprudential policy remains where the vulnerabilities or the exposure of the financial sector remain manageable. this might be a long-winded way of saying that i think asia has a -- has a -- has a sound exchange rate policy. it's a much more flexible exchange rate regime to absorb shocks. more central banks have a framework for macro-prudential supervision and asia in fact has led the world in terms of implementing macro-prudential policies to address systemic risk in the financial system. >> i mean, let me force one more time and then i will stop, eshwar, i mean we have two countries which have very large surpluses, china was reduced, but going up again. and germany, okay. both of these countries are embedded in regions, china in asia and germany in europe, but they resemble each other in terms of trade position quite a bit. and yet both of these countries have exchange rates that are depreciating. whereas in the kind of global imbalances sense you would hope that they would appreciate. any thoug