Monetary policy and financial (in)stability

The Banque de France will host a one day conference on “Monetary policy and financial (in)stability”.

While serving distinct objectives, monetary policy and financial stability policy potentially interact in several ways. E.g., periods of low interest rates may encourage risk-taking by financial institutions and prepare future crisis, absent proper regulatory safeguards or macroprudential actions. Conversely, financial instability issues may hamper the normal transmission channels of monetary policy. The six research papers gathered in this conference seek to further our understanding of these and related interactions.

The conference is jointly organized by the Banque de France, Sciences Po and the Systemic Risk Center of the London School of Economics, and also benefits from financial support by the European Research Council and the Economic and Social Research Council (Grant number ES/K002309/1).

Organizing committee: Régis Breton (Banque de France), Laurent Clerc (Banque de France), Guillaume Plantin (Sciences Po and SRC), Jean-Pierre Zigrand (SRC, LSE)

To attend this conference, please fill in and return the following registration form to conference-BdF-ScPo-LSE-2016@banque-france.fr by February, 29th.

Conference papers and presentations

Session 1

“Quantitative Easing and Bank Risk Taking: Evidence from Lending”
John Kandrac (Federal Reserve Board) and Bernd Schlusche (Federal Reserve Board)
Presentation by Kandrac
Discussion by Cesa-Bianchi (Bank of England)

“Banks, Capital Flows and Financial Crisis”
Ozge Akinci (Federal Reserve Bank of New York) and Albert Queralto (Federal Reserve Board)
Presentation by Queralto 
Discussion by Romei (Stockholm School of Economics)

Session 2

Illiquid Collateral and Bank Lending during the European Sovereign Debt Crisis
Vincent Bignon (Banque de France), Jean Barthélemy (Sciences Po and Banque de France) and Benoit Nguyen (Banque de France)
Presentation by Barthélemy
Discussion by Heider (European Central Bank)

“Flight to Liquidity and Systemic Bank” 
Roberto Robatto (University of Wisconsin-Madison)
Presentation by Robatto 
Discussion by Mengus (HEC Paris)

Session 3

“Exchange Rates and Monetary Spillovers”
Guillaume Plantin (Sciences Po and SRC) and Hyun-Song Shin (BIS)
Presentation by Plantin 
Discussion by Marx (Banque de France)

“Monetary Policy for a Bubbly World”
Vladimir Asriyan (CREI), Luca Fornaro (CREI), Alberto Martin (CREI) and Jaume Ventura (CREI)
Presentation by Asriyan
Discussion by Ragot ((OFCE and PSE(CNRS)))

Conference venue : Banque de France conference center, 31 rue Croix-des-Petits-Champs, Paris