Central banking after the great recession
Have Central Banks lost their ability to control domestic inflation? Are macroprudential tools sufficient to ensure financial stability? Do new monetary tools, a closer relationship with fiscal policy and the renewed financial stability mandate require a new central banking paradigm?
Old theories in monetary policy are being challenged and macroprudential policy is ever more important. This two-session workshop addressed the place of central banks in the post-crisis economy.
Session 1: Macroprudential policy and its relationship with monetary policy: the complex European framework
Macroprudential policy has two main goals: to increase the resilience of the financial system and to tame the financial cycle with more targeted tools than monetary policy. These measure can be tailored to country-specific circumstances, which is especially important in a heterogeneous monetary union. However, macroprudential policies are new and still under construction, especially in advanced economies. Are macroprudential tools sufficient to ensure financial stability? Could the complex European set-up make their implementation less effective?
Session 2: After the crisis, the evolving role of central banks
Do we have to re-open the institutional design question we had thought we had solved establishing independent central bank moving interest rates in the pursuit of price stability? Do new monetary tools, a closer relationship with fiscal policy and the renewed financial stability mandate require a new central banking paradigm?
10.30 - 10.50
Check-in and Coffee
10.50 - 11.00
Guntram B. Wolff, Director
11.00 - 12.30
12.30 - 13.00
Markus K. Brunnermeier
Professor, Princeton University
Claudia M. Buch
Vice-President, Deutsche Bundesbank
Emeritus Professor, London School of Economics
Member of the Monetary Policy Council, National Bank of Poland
Deputy Governor, National Bank of Sweden
Guntram B. Wolff
Location & Contact
[email protected] +32 2 227 4212