Capital Flows, Systemic Risk, and Policy Responses

Reykjavik, Iceland

April 28-29, 2016

The Central Bank of Iceland, the Systemic Risk Centre at The London School of Economics and the International Monetary Fund announced a call for papers for the conference “Capital Flows, Systemic Risk, and Policy Responses”, to be held April 28-29, 2016, in Reykjavik, Iceland. The purpose of the two-day event is to promote the exchange of ideas and knowledge between academics and policy makers on systemic risk and macroprudential regulation in economies that are not among the core global rate setters.

Key dates

Deadline for paper submission: January 11, 2016
Notification of paper acceptance: January 27, 2016
Conference dates: April 28 – 29, 2016
Deadline to register: April 10, 2016


The conference organizers invited authors – whether from academia or public authorities (including central banks) – to submit papers focused on policy issues, theory or empirical analyses on the following topics:

• identification and measurement of systemic risk emanating from capital flows

• capital inflows/outflows and financial stability

• objectives and tools of macroprudential policies

• interaction between monetary and macroprudential policies

• political economy challenges in implementing an effective macroprudential regime

Confirmed speakers

Confirmed speakers include Maurice Obstfeld (International Monetary Fund), Charles Goodhart (Systemic Risk Centre, The London School of Economics), Stijn Claessens (Board of Governors of the Federal Reserve System), and Jon Danielsson (Systemic Risk Centre, The London School of Economics).

Conference organizers

The organizing committee of the conference includes Marco Arena (International Monetary Fund), Sigríður Benediktsdóttir (Central Bank of Iceland), and Katja Neugebauer (Systemic Risk Centre, LSE).

Further information: Should you have any questions, please contact Katja Neugebauer (

Thursday, April 28, 2016
09:15 – 09:30
Introductory Remarks:
Már Guðmundsson (Governor Central Bank of Iceland)
09:30 – 10:30
Keynote Address:
Stijn Claessens (Board of Governors of the Federal Reserve System)
10:30 – 10:50
Coffee Break
10:50 – 12:40

Session #1: Policy Responses: Implementation of Macroprudential Policies (I)

Jeffrey M. Chwieroth (London School of Economics): When Do Regulators Lean Against the Wind?: The Political Economy of Implementing Macro-prudential Regulatory Tools

Gurnain Pasricha (Bank of Canada): Motivations for Capital Controls and Their Effectiveness

Sebastian Krug (Kiel University): The Interaction between Monetary and Macroprudential Policy

Discussion led by tbd

12:40 – 13:40 Lunch
13:40 – 15:30

Session #2: Policy Responses: Implementation of Macroprudential Policies (II)

Fatih Altunok (Central Bank of Turkey): Credit Growth and Reserve Requirements as a Macro-prudential Policy: Evidence from Loan-Level Data

Dennis Reinhardt (Bank of England): Regulatory Arbitrage in Action: Evidence from Banking Flows and Macroprudential Policy

Sebnem Kalemli-Ozcan (University of Maryland): tbd

Discussion led by tbd

15:30 – 15:50 Coffee Break
15:50 – 17:40

Session #3: Capital Flows and Policy Responses

Rodrigo Cifuentes (Central Bank of Chile): Facing Volatile Capital Flows: The Role of Exchange Rate Flexibility and Foreign Assets

Damiano Sandri (IMF): Capital Controls or Macroprudential Regulation?

John Beirne (European Central Bank): Capital Flows and Macroprudential Policies - A Multilateral Assessment of Effectiveness and Externalities

Discussion led by Charles Goodhart (Systemic Risk Centre, FMG, LSE)

Friday, April 29th
09:00 – 10:50

Session #4: Capital Flows and Financial Stability

Chiara Scotti (Board of Governors of the Federal Reserve System): International Capital Flows and Unconventional Monetary Policy

Deniz Igan (IMF): Capital Inflows, Credit Growth, and Financial Systems

Deniz Igan (IMF): Capital Inflows, Credit Growth, and Financial Systems

Teodora Paligorova (Bank of Canada): Cross-Border Bank Flows and Monetary Policy

Discussion led by Luis Catão (IMF)

10:50 – 11:10 Break
11:10 – 11:40 Jon Danielsson (Systemic Risk Centre, LSE): Financial Policy in Highly Volatile Economies
11:40 – 12:10 CBI tbd: Capital Flows and Policy Responses in Iceland
12:10 – 13:30 Lunch
Move to Harpa
14:00 – 15:00

Keynote Address:

Maurice Obstfeld (IMF)

15:00 – 15:20 Break
15:20 – 17:00

High-level Panel

Moderator: Jörg Decressin (IMF)

Karnit Flug (Central Bank of Israel)

Már Guðmundsson (Central Bank of Iceland)

Turalay Kenç (Central Bank of Turkey)

Luiz A. Pereira da Silva (BIS)

Carmen Reinhart (Harvard Kennedy School)

17:00 – 17:15

Closing Remarks:

Jon Danielsson (Director of the Systemic Risk Centre, LSE)