Financial Markets and the Macroeconomy: Challenges for Central Banks. November 6-7, 2009

Sveriges Riksbank, Stockholm, Sweden



The financial turmoil currently impacting many countries around the globe raises critical questions about the structure of financial systems and the linkages between financial and real sectors. In light of these developments, Sveriges Riksbank, the central bank of Sweden, will host a workshop on “Financial Markets and the Macroeconomy: Challenges for Central Banks” on November 6–7, 2009. 


The aim of the workshop is to discuss the implications of financial disruption for the economy and the new challenges that the current situation poses for central banks. We welcome theoretical and empirical work addressing the following topics:
(i) financial intermediation and the macroeconomy, (ii) financial markets and banking in macro models, (iii) the link between financial stability and monetary policy, and (iv) low interest rate environments and debt-deflation scenarios.




Thursday, November 5

18:30 Welcome drink at Sveriges Riksbank

Friday, November 6


Registration and coffee

Session I.
Chair: Tor Jacobson, Head of Research, Sveriges Riksbank


Lessons from the Swedish Banking Crisis in the 1990s [Paper]
Stefan Ingves, Chairman of the Executive Board and Governor,
Sveriges Riksbank


The 1990's Financial Crises in Nordic Countries [Paper] 
Seppo Honkapohja, Board Member, Board of Governors, Bank of Finland


10:00 Lessons Learned (or Not) from the Financial Crisis in the US [Paper] 
David E. Altig, Federal Reserve Bank of Atlanta
10:30 Coffee
11:00 Trusting the Bankers: A New Look at the Credit Channel of Monetary Policy [Paper]
Matteo Ciccarelli, European Central Bank
Angela Maddaloni, European Central Bank
José-Luis Peydró, European Central Bank
Discussant: Jesper Lindé, Federal Reserve Board
12:00 Linkages between the Financial and Real Sectors: Bank Credit and Capital over the Crisis [Paper]
Jose Berrospide, Federal Reserve Board
Rochelle Edge, Federal Reserve Board
Discussant: Sylvain Leduc, Federal Reserve Bank of San Francisco
13:00 Lunch at Sveriges Riksbank


Session II
Chair: Ulf Söderström, Sveriges Riksbank

14:00 Deposit insurance and money market freezes [Paper]
Max Bruche, CEMFI
Javier Suarez, CEMFI
Discussant: Tore Ellingsen, Stockholm School of Economics
15:00 Credit Allocation, Capital Requirements and Procyclicality [Paper]
Esa Jokivuolle, Bank of Finland
Ilka Kiema, University of Helsinki
Timo Vesala, University of Helsinki
Discussant: Kasper Roszbach, Sveriges Riksbank
16:00 Coffee
16:15 Estimates of Bank Lending and GDP Responses to Troubled Asset Relief Program (TARP) Capital Injections and to Expansions of Government Guarantees [Paper]
Scott Frame, Federal Reserve Bank of Atlanta
Diana Hancock, Federal Reserve Board
Wayne Passmore, Federal Reserve Board
Discussant: Roland Meeks, Bank of England
17:15 Financial Structure and the Impact of Monetary Policy on Asset Prices [Paper]
Katrin Assenmacher-Wesche, Swiss National Bank
Stefan Gerlach, Goethe University Frankfurt
Discussant: Paul Söderlind, University of St. Gallen
19:30 Dinner at Grand Hotel


Saturday, November 7



Session III
Chair: Daria Finocchiaro, Sveriges Riksbank

09:00 Conventional and unconventional monetary policy [Paper]
Vasco Cúrdia, Federal Reserve Bank of New York
Michael Woodford, Columbia University
Discussant: Lars E.O. Svensson, Deputy Governor, Sveriges Riksbank
10:00 Monetary Policy and the Financing of Firms [Paper]
Fiorella De Fiore, European Central Bank
Pedro Teles, Banco de Portugal
Oreste Tristani, European Central Bank
Discussant: Kosuke Aoki, London School of Economics
11:00 Coffee
11:30 Liquidity, Business Cycles, and Monetary Policy [Paper]
Nobuhiro Kiyotaki, Princeton University
John Moore, Edinburgh University
Discussant: Andrea Ferrero, Federal Reserve Bank of New York
12:30 Lunch at Sveriges Riksbank


Session IV
Chair: Karl Walentin, Sveriges Riksbank

13:30 Capital Injection, Monetary Policy and Financial Accelerators [Paper]
Naohisa Hirakata, Bank of Japan
Nao Sudo, Bank of Japan
Kozo Ueda, Bank of Japan
Discussant: Tommy Sveen, Norges Bank                                                
14:30 Credit and Banking in a DSGE Model of the Euro Area [Paper]
Andrea Gerali, Banca d’Italia
Stefano Neri, Banca d’Italia
Luca Sessa, Banca d’Italia
Federico Signoretti, Banca d’Italia
Discussant: Caterina Mendicino, Banco de Portugal
15:30 Adjourn


Time allocation

Presentation: 30 minutes
Discussant: 15 minutes
Open discussion: 15 minutes

Lena Löfgren

Sveriges Riksbank will cover expenses for economy-class travel and accommodation for paper presenters and discussants.


The organizing committee consists of Tor Jacobson, Daria Finocchiaro, Virginia Queijo von Heideken, Ulf Söderström and Karl Walentin. Questions can be directed to Lena Löfgren

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