Financial Cycles, Liquidity, and Securitization

International Monetary Fund
Washington, D.C.
April 18, 2008

The recent financial turmoil has highlighted the importance of the linkages between liquidity, financial innovation, and the real economy. An IMF conference on Financial Cycles, Liquidity, and Securitization served as a forum for experts conducting research on these issues to exchange views.

This website contains papers and web links to papers that were presented at the conference. 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.


Friday, April 18, 2008
Session I: Financial Cycles around the World
Chair: Stijn Claessens (Assistant Director, Research Department, IMF)
9:00 a.m. Liquidity, Business Cycles, and Monetary Policy
Nobuhiro Kiyotaki (Princeton University) and John Moore (London School of Economics)
An Anatomy of Credit Booms: Evidence from Macro Aggregates and Firm Level Data
Enrique G. Mendoza (University of Maryland) and Marco E. Terrones (IMF)
Discussants: Olivier Jeanne (IMF) and Simon Gilchrist (Boston University)
10:30 a.m. Coffee Break
Session II: Liquidity and Interbank Markets
Chair: Hervé Ferhani (Deputy Director, Monetary and Capital Markets Department, IMF)
10:45 a.m. Liquidity and Leverage
Hyun Song Shin (Princeton University) and Tobias Adrian (Federal Reserve Bank of New York)
Hazardous Times for Monetary Policy: What Do Twenty-Three Million Bank Loans Say About the Effects of Monetary Policy on Credit Risk?
Jesús Saurina (Bank of Spain), Gabriel Jiménez (Bank of Spain), Steven Ongena (Tilburg University), and José Luis Peydró (ECB)
Discussants: Laura Kodres (IMF) and Enrica Detragiache (IMF)
12:30 p.m. Luncheon - IMF Reception Hall (by invitation only)
Keynote Speech: Randall Kroszner (Governor, Federal Reserve Board)
Session III: Securitization and Supply of Credit
Chair: Asli Demirguc-Kunt (Senior Research Manager, World Bank)
2:15 p.m. Securitization and the Declining Impact of Bank Financial Condition on Loan Supply: Evidence from Mortgage Acceptance Rates
Elena Loutskina (University of Virginia) and Philip Strahan (Boston College)
Credit Booms and Lending Standards: Evidence from the Sub-Prime Mortgage Market
Giovanni Dell'Ariccia, Deniz Igan, and Luc Laeven (IMF)
Discussants: Takeo Hoshi (University of California, San Diego) and Chris Mayer (Columbia Business School)
3:45 p.m. Coffee Break
4:00 p.m. Panel Session: Managing the Bust of Credit Cycles: Policy Lessons
Chair: Simon Johnson (Economic Counsellor and Director of the Research Department, IMF)
Panelists: Lewis Alexander (Chief Economist, Citi), Charles Calomiris (Columbia University), Jose De Gregorio (Governor, Central Bank of Chile)