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Macro-Financial Stability in the New Normal

Macro-Financial Stability in the New Normal

Date: April 7, 2011

Time: 8:30 am—4:00 pm

Venue: HQ1-R-710 (Auditorium)
700, 19th St N.W., Washington, D.C.

In the aftermath of the global financial crisis, monetary and regulatory policies are being reassessed to reduce systemic vulnerabilities and costly financial crises.

The global financial crisis has highlighted weakness in macroeconomic and regulatory policies and market failures that contributed to a buildup of systemic risks. In this context, numerous questions have arisen. What was the role of monetary policy and financial regulation in contributing to vulnerabilities? How can monetary policy be adapted to achieve greater financial stability? What are the lessons from the crisis for the design of macro-prudential policies and regulations? What are specific lessons for emerging markets that are experiencing large and volatile capital flows? Is there a need to revisit financial liberalization?

The Macro-Financial Unit in the IMF Research Department has organized an academic conference, where leading economists will present their work on these issues, shed light on lessons learned from the crisis, and provide policy suggestions.

Macro-Financial Stability in the New Normal
Thursday, April 7, 2011
08:30 a.m.

Continental Breakfast

09:00-10:40 a.m.

Session I

Monetary Policy and Financial Stability

Chair: Giovanni Dell’Ariccia (IMF)

1. Monetary Policy as Financial-Stability Regulation

Jeremy C. Stein PresentationSee the presentation

(Jeremy C. Stein, Harvard)

Discussant: Enrique Mendoza (U. of Maryland)

2. Carry Trades, Monetary Policy and Speculative Dynamics

Guillaume Plantin PresentationSee the presentation

(Guillaume Plantin, Toulouse) and (Hyun Song Shin, Princeton)

Discussant: Itay Goldstein (Wharton)

10:40-11:00 a.m.

Coffee Break

11:00 a.m.-12:40 p.m.

Session II

Emerging Markets, Capital Flows and Financial Liberalization

Chair: Jonathan D. Ostry (IMF)

1. Rethinking the Effects of Financial Liberalization

Fernando A. Broner, Pompeu Fabra PresentationSee the presentation

(Fernando A. Broner, Pompeu Fabra) and (Jaume Ventura, Pompeu Fabra)

Discussant: Kenichi Ueda (IMF)

2. Liquidation of Government Debt

Carmen M. Reinhart, M. Belen Sbrancia PresentationSee the presentation

(M. Belen Sbrancia, U. of Maryland) and (Carmen M. Reinhart, Peterson IIE)

Discussant: Luc Laeven (IMF)

12:40-02:20 p.m.

Lunch (by invitation only)

02:20-04:00 p.m.

Session III

Monetary Policy and Financial Oversight in the New Normal

Chair: Stijn Claessens (IMF)

1. Monetary Policy Strategy: Lessons from the Crisis

Frederic S. Mishkin PresentationSee the presentation

(Frederic S. Mishkin, Columbia)

Discussant: Laurence Ball (JHU)

2. The Governance of Financial Regulation: Reform Lessons from the Recent Crisis

(Ross Levine, Brown)

Discussant: Mark Carey (Federal Reserve Board of Governors)

Organized by Eugenio Cerutti, IMF Research Department, Macro-Financial Unit. For further information and details on attendance please contact Helen Hwang.