Monetary policy and employment in developing Asia

Despite the high prevalence of vulnerable employment and working poverty in developing Asia, full employment is not a legislated objective of any central bank in the region. As this paper shows, however, many central banks are actively using monetary policy to promote productive employment, and they do appear concerned with labour market outcomes. By working closely with governments, central banks in developing Asia help to promote macroeconomic stability and strive for the goal of full employment. But given the gaps in employment data and the structural roots of vulnerable employment and poverty, tasking central banks in developing Asia with an employment objective, as has been done in Australia and the United States, appears inappropriate.