## Central Banks, Financial Regulators, and the Quest for Financial Stability

_IMF Blog, November 7, 2011_

## Source details

**Canonical URL:** [Central Banks, Financial Regulators, and the Quest for Financial Stability](https://www.imf.org/en/blogs/articles/2011/11/07/2011-imf-annual-research-conference)

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- [Markdown version](/en/blogs/articles/2011/11/07/2011-imf-annual-research-conference/index.md)
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- [Bundle manifest](/en/blogs/articles/2011/11/07/2011-imf-annual-research-conference/bundle-manifest.json)

## Bibliographic details
- Authors: Olivier Blanchard
- Published: November 7, 2011

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### Conference overview
- Title: Central Banks, Financial Regulators, and the Quest for Financial Stability
- Event: 2011 IMF Annual Research Conference
- Author/speaker: Olivier Blanchard
- Date: November 7, 2011
- Focus: Interaction between monetary and macroprudential policies and their role in achieving macroeconomic and financial stability.

### Motivation and context
- The global financial crisis prompted a fundamental rethinking of macroeconomic policy and how many policy instruments work together.
- Interactions between monetary and macroprudential policies remain "hotly debated."
- Past conference papers on post-crisis macroeconomic and financial policies have been immediately relevant to real-world events (example cited: paper on fiscal space relevant to the European sovereign crisis and U.S. budget debates).

### Key themes and questions for debate
- Whether monetary policy should "lean against credit and asset price bubbles" or delegate that task to macroprudential policy.
- The implications if macroprudential policy is only "partially effective" due to regulatory arbitrage and other "leakages" — whether monetary policy should then "weigh in" as well.
- Challenges when the government lacks full information on the riskiness of new financial instruments and the ability to set effective macroprudential policies for lasting financial stability.
- How monetary tightening might encourage excessive risk-taking by financial institutions in distress at higher interest rates.
- Coordination of macroprudential policies internationally when they have cross-border repercussions.
- The role of international factors in determining domestic financial conditions, including cross-border intermediation (to be addressed in the Mundell-Fleming keynote).

### Program highlights
- Keynote Mundell-Fleming address: Professor Hyun Song Shin (Princeton University) — will discuss the role of international factors in domestic financial conditions, with an example of European global banks intermediating U.S. dollar funds easing U.S. credit conditions.
- Eleven other papers on the program addressing critical aspects of the intersection between monetary and macroprudential policies.
- Policy-oriented events:
  - Opening remarks by David Lipton, IMF First Deputy Managing Director.
  - Luncheon speech by Jean-Pierre Landau, Second Deputy Governor of the Banque de France — reflecting on central banks' evolving role in maintaining financial stability.
  - Concluding Economic Forum on “Monetary and Macroprudential Policies: Challenges and Solutions” featuring a panel including Lewis Alexander (Nomura), Joe Gagnon (Peterson Institute of International Economics), Andrew Lo (MIT), and John Williams (Federal Reserve Bank of San Francisco).

### Objectives and expected outcomes
- Advance debate and research on how monetary and macroprudential policies interact.
- Engage academics, policymakers, and private sector practitioners to expand the frontier of knowledge on monetary–macroprudential interactions.
- Contribute to new policy thinking within the IMF and among economists and policymakers more broadly.
- Selected conference papers to be featured in the IMF Economic Review.

### Participation and access
- Papers are posted online for reading.
- The Economic Forum will be broadcast on www.imf.org and readers are invited to comment.

*Source: Olivier Blanchard, "Central Banks, Financial Regulators, and the Quest for Financial Stability," 2011 IMF Annual Research Conference, November 7, 2011.*

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## Content in this bundle

- **Agjkemjomq**
  - [Agjkemjomq (Markdown version)](/external/np/res/seminars/2010/arc/pdf/agjkemjomq.pdf.md){rel="alternate" type="text/markdown"}
  - [Agjkemjomq (PDF)](/external/np/res/seminars/2010/arc/pdf/agjkemjomq.pdf){rel="external" type="application/pdf"}
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- **Monetary and Macroprudential Policies**
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  - [Monetary and Macroprudential Policies (PDF)](/external/np/res/seminars/2011/arc/pdf/program.pdf){rel="external" type="application/pdf"}

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## References

- [future of macroeconomic policy](http://blogs.imf.org/2011/03/13/future-of-macroeconomic-policy/)
- [https://www.imf.org/wp-content/uploads/2011/11/2011arc-poster.jpg](https://www.imf.org/wp-content/uploads/2011/11/2011arc-poster.jpg)
- [monetary and macroprudential policies](http://www.imf.org/external/np/res/seminars/2011/arc/index.htm)
- [last year’s conference](http://blogs.imf.org/2010/11/19/exploring-economic-policy-frontiers-after-the-crisis-2010-imf-research-conference/)
- [post-crisis macroeconomic and financial policies](http://www.imf.org/external/np/res/seminars/2010/arc/index.htm)
- [David Lipton, the IMF’s First Deputy Managing Director,](http://www.imf.org/external/np/omd/bios/dl.htm)
- [Economic Forum on “Monetary and Macroprudential Policies: Challenges and Solutions](http://www.imf.org/external/np/res/seminars/2011/arc/index1.htm)
- [Pierre-Olivier Gourinchas](http://www.imf.org/external/pubs/ft/survey/so/2009/BOK100509A.htm)
- [www.imf.org](http://www.imf.org/)

_Source: https://www.imf.org/en/blogs/articles/2011/11/07/2011-imf-annual-research-conference_