{ "title": "Opening Remarks at Advances in Monetary Economics Conference", "publication": "IMF News, July 13, 2020", "sourceUrl": "https://www.imf.org/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference", "canonical": "https://www.imf.org/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference", "overlayPath": "/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference/index.md", "summary": "Speaker: Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department, IMF.", "publishDate": "2020-07-13", "sections": [ { "heading": "Context and purpose", "content": "- Speaker: Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department, IMF.\n- Date: July 13, 2020.\n- Event: Inaugural “Advances in Monetary Economics” conference; followed by the Michel Camdessus lecture to be given tomorrow by Thomas Jordan, the Chairman of the Swiss National Bank.\n- Central theme: Appropriate monetary policy in a “lower-for-longer” interest rate environment, made more urgent by the unprecedented COVID-19 shock." }, { "heading": "Challenges identified with lower-for-longer rates and unconventional policy", "content": "- Persistent pre-crisis problems:\n - Low inflation and low equilibrium real rates in advanced economies.\n - Use of unconventional monetary policies to support growth and inflation once policy rates were constrained by the effective lower bound.\n - Need to better understand many aspects of these unconventional policies despite a considerable literature on their effectiveness.\n- Unintended consequences and risks:\n - Search for yield.\n - Buildup of leverage.\n - Spillovers to emerging markets, notably through capital inflow surges and the risk of reversals.\n- COVID-19 intensified policy responses and challenges:\n - Advanced-economy central banks expanded balance sheets unprecedentedly.\n - The Fed implemented measures including lending to securities firms, backstopping MMFs, and direct lending to banks, major corporate employers, and SMEs.\n - A number of EM central banks embarked in unconventional policy measures for the first time.\n - These actions improved market functioning and eased financial conditions, but significant challenges remain ahead." }, { "heading": "IMF engagement, capacity building, and agenda", "content": "- Strengthening dialogue:\n - Fund committed to engaging with academia and central banks; launch of the new annual conference accompanies the Camdessus lecture.\n- Enhancing analytical capacity:\n - Fund has produced extensive work on:\n - Experience and prospects for unconventional monetary policy.\n - Effectiveness of negative interest rates.\n - Medium-term risks to growth and stability due to accommodative conditions and the lower-for-longer interest rate environment.\n - Monetary policy transmission in emerging market- and developing economies.\n - A new Monetary Policy Modeling Unit has been formed to allow deeper analysis and strengthen technical dialogue with central banks.\n- Research and policy focus going forward:\n - Macroeconomic policy mix under lower-for-longer interest rates.\n - Financial stability risks.\n - Spillovers.\n - Potential distributional effects." }, { "heading": "Integrated policy framework for emerging markets and open economies", "content": "- Objective: Understand complementarities among policy choices without altering the role and objectives of monetary policy.\n- Framework purpose:\n - Compare costs and benefits of four tools to help stabilize economies exposed to domestic and external shocks:\n - Monetary policy.\n - Macroprudential policy.\n - Exchange rate interventions.\n - Capital flow measures.\n - Capture how these tools interact with each other and with country circumstances (the “integrated” aspect).\n- Recent work: Publication last week of three key working papers on this topic." }, { "heading": "Conference role and outlook", "content": "- Conference purpose: Platform to question conventional wisdom, evolve views and frameworks, and push forward thinking on monetary policy in changing realities.\n- Expectation: Impressive lineup of speakers and papers to advance discussion across the issues highlighted.\n\nSource: Opening Remarks at Advances in Monetary Economics Conference, Tobias Adrian, July 13, 2020.\n\n---\n\n\n References\n\n- Tobias Adrian\n- Jordan and the IMF\n- Speeches\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference" } ], "bullets": [ "[Markdown version](/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference/index.md)", "[Structured JSON version](/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference/index.json)", "[Bundle manifest](/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference/bundle-manifest.json)", "Published: July 13, 2020", "Speaker: Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department, IMF.", "Date: July 13, 2020.", "Event: Inaugural “Advances in Monetary Economics” conference; followed by the Michel Camdessus lecture to be given tomorrow by Thomas Jordan, the Chairman of the Swiss National Bank.", "Central theme: Appropriate monetary policy in a “lower-for-longer” interest rate environment, made more urgent by the unprecedented COVID-19 shock.", "Persistent pre-crisis problems:", "Unintended consequences and risks:", "COVID-19 intensified policy responses and challenges:", "Strengthening dialogue:", "Enhancing analytical capacity:", "Research and policy focus going forward:", "Objective: Understand complementarities among policy choices without altering the role and objectives of monetary policy.", "Framework purpose:", "Recent work: Publication last week of three key working papers on this topic.", "Conference purpose: Platform to question conventional wisdom, evolve views and frameworks, and push forward thinking on monetary policy in changing realities.", "Expectation: Impressive lineup of speakers and papers to advance discussion across the issues highlighted.", "[Tobias Adrian](http://www.imf.org/external/np/bio/eng/ta.htm)", "[Jordan and the IMF](http://www.imf.org/external/country/JOR/index.htm)", "[Speeches](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference/index.md", "json": "/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference/index.json", "bundleManifest": "/en/news/articles/2020/07/13/sp071320-advances-in-monetary-economics-conference/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T23:46:28.934Z" }