International Monetary Fund

Monetary and Macroprudential Policies

Twelfth  Jacques  Polak  Annual  Research Conference Research  Department, IMF

Date: NOVEMBER 10–11, 2011

Venue: HQ2 Conference Hall 1
1900 Pennsylvania Ave., Washington, D.C.

The International Monetary Fund will hold the Twelfth Jacques Polak Annual Research Conference at its headquarters in Washington DC on November 10–11, 2011.

The theme of this year's conference is “Monetary and Macroprudential Policies.” The conference is intended to provide a forum for discussing innovative research and to facilitate the exchange of views among researchers and policymakers. Hyun Song Shin (Princeton University) will deliver the Mundell-Fleming Lecture.

The conference is open to the public and registration is required. To register for the conference (registration will include all conference sessions, the Mundell-Fleming Lecture, and the Economic Forum) please complete the Online Registration Form. The deadline for public registration is Friday, November 4, 2011. Registered attendees will be required to present photo identification on entering the IMF at 1900 Pennsylvania Ave., N.W. Washington D.C. For questions regarding the conference, please send an email to

Please note that, for this event, invitations for visa purposes will be extended only to the conference speakers.


The website contains papers and web links to papers that will be presented at the Twelfth Jacques Polak Annual Research Conference (ARC). The views expressed in these papers are those of the authors only, and the presence of them, or of links to them, on the IMF website does not imply that the IMF, its Executive Board, or its management endorses or shares the views expressed in the papers.

Monetary and Macroprudential Policies


Thursday, November 10, 2011

Registration and Continental Breakfast


Opening Remarks David Lipton, First Deputy Managing Director, IMF

Watch the Opening Remarks


Session 1:

Macroprudential Regulation: Implementation Issues and Side Effects

Chair: Nemat Shafik (Deputy Managing Director, IMF)

Does Macro-Pru Leak? Empirical Evidence from a UK Natural Experiment

Shekhar Aiyar (IMF), Charles W. Calomiris (Columbia Business School), and Tomasz Wieladek (London Business School)

Discussant: Mark Flannery (University of Florida)

The Risk-Shifting Hypothesis: Evidence from Subprime Originations

Augustin Landier (Toulouse School of Economics), David Sraer (Princeton University) and David Thesmar (HEC)

Discussant: Amit Seru (Chicago Booth)


Coffee Break


Session 2:

Monetary and Macroprudential Policy: Lessons from and for a Currency Union

Chair: Ajai Chopra (Deputy Director, European Department, IMF)

The Low Monetary Rates Paradox, Banking Stability and Credit: Evidence from the Euro Area

Angela Maddaloni (European Central Bank) and José-Luis Peydró (Universitat Pompeu Fabra and Barcelona GSE)

Discussant: María Soledad Martínez Pería (World Bank)

Monetary and Macroprudential Policy in an Estimated DSGE Model of the Euro Area

Dominic Quint (Free University Berlin) and Pau Rabanal (IMF)

Discussant: Jesper Lindé (Federal Reserve Board)



(By invitation only, Conference Hall 2)

Luncheon Remarks – Jean-Pierre Landau, Deputy Governor, Banque de France


Session 3:

Macroprudential Policy and Capital Flow Management

Chair: Stijn Claessens (Assistant Director, Research Department, IMF)

Financial Frictions, Foreign Currency Borrowing, and Systemic Risk

Giovanni Dell’Ariccia (IMF), Luc Laeven (IMF), and Robert Marquez (Boston University)

Discussant: Tanju Yorulmazer (Federal Reserve Bank of New York)

Bubble Thy Neighbor: Direct and Spillover Effects of Capital Controls

Kristin Forbes (MIT), Marcel Fratzscher (European Central Bank), Thomas Kostka (European Central Bank), and Roland Straub (European Central Bank)

Discussant: Eswar Prasad (Cornell University)


Coffee Break


Mundell-Fleming Lecture

Global Banking Glut and Loan Risk Premium

Hyun Song Shin (Princeton University)

Introduction by: Olivier Blanchard (Economic Counsellor and Director, Research Department, IMF)

Watch the Mundell-Fleming Lecture

Friday, November 11, 2011

Registration and Continental Breakfast


Session 4:

Optimal Design of Monetary and Macroprudential Policies

Chair: José Viñals (Financial Counsellor and Director, Monetary and Capital Markets Department, IMF)

Macro-prudential Policy in a Fisherian Model of Financial Innovation

Javier Bianchi (New York University and University of Wisconsin-Madison), Emine Boz (IMF) and Enrique Mendoza (University of Maryland)

Discussant: Dan Cao (Georgetown University)

Monetary and Macro-Prudential Policies: An Integrated Analysis

Gianluca Benigno (London School of Economics), Huigang Chen (MarketShare Partners), Christopher Otrok (University of Missouri-Columbia), Alessandro Rebucci (IADB), and Eric R. Young (University of Virginia)

Discussant: Olivier Jeanne (Johns Hopkins University)


Coffee Break


Session 5:

Monetary Policy, Bank Liquidity and Counterparty Risk

Chair: Stijn Claessens (Assistant Director, Research Department, IMF)

A Theory of Bank Liquidity Requirements

Charles Calomiris (Columbia University), Florian Heider (European Central Bank), and Marie Hoerova (European Central Bank)

Discussant: Lev Ratnovski (IMF)

A Pigovian Approach to Liquidity Regulation

Enrico C. Perotti (University of Amsterdam) and Javier Suarez (CEMFI)

Discussant: Tobias Adrian (Federal Reserve Bank of New York)

Clearing, Counterparty Risk and Aggregate Risk

Bruno Biais (Toulouse School of Economics), Florian Heider (European Central Bank), and Marie Hoerova (European Central Bank)

Discussant: Ana Fostel (George Washington University)



(By invitation only, Conference Hall 2)


Economic Forum:

Monetary and Macroprudential Policies: Challenges and Solutions

Moderator: Olivier Blanchard, Economic Counsellor and Director, Research

Department, IMF


1. Lewis Alexander (Nomura)

2. Joe Gagnon (Peterson Institute of International Economics)

3. Andrew Lo (MIT)

4. John Williams (Federal Reserve Bank of San Francisco)

Watch the Economic Forum

Twelfth  Jacques  Polak  Annual  Research Conference Research  Department, IMF

Organizing Committee

Natalia Tamirisa (Chair), Emine Boz, Giovanni Favara, Ayhan Kose, Rafael Portillo and Lev Ratnovski (All IMF), and Pierre-Olivier Gourinchas (Editor of the IMF Economic Review, University of California, Berkeley). Olivier Blanchard and Stijn Claessens provided general guidance.

Conference Coordinators:
Tracey Lookadoo and Sumit Aneja