About this conference
On 25-26 April 2013 the BIS held a conference on "Financial stability, macroprudential policy and exchange rates", the fourth under the auspices of the BIS Consultative Council for the Americas (CCA). It brought together researchers from the central banking community in the region and distinguished academics and was hosted by the Central Bank of Chile in Santiago.
A Scientific Committee, led by Stephen G Cecchetti, and comprising CCA central bank heads of research, selected papers on the following topics:
- Measuring financial stability;
- International transmission of financial shocks (eg global liquidity spillovers) and impact on domestic real activity and financial sector; (
- external or domestic financial imbalances (eg credit growth and asset prices, currency or maturity mismatches)
- Cost and benefits of macroprudential policy and prudential regulation, effectiveness, scope and criteria for instrument selection;
- Coordination of monetary and macroprudential policies, interactions;
- Macroprudential policy and the real economy,
- Institutional arrangements, implementation and communication.
- Interactions with terms of trade (commodity prices) and capital flows;
- Exchange rate volatility, inflation dynamics, financial stability, and the real sector;
- Foreign exchange market interventions and other policy options (eg foreign reserve accumulation, capital controls) to deal with capital flows, external shocks and exchange rate volatility
- Jorge Carrera (Central Bank of Argentina)
- Eduardo Lima (Central Bank of Brazil)
- Allan Crawford (Bank of Canada)
- Luis Oscar Herrera (Central Bank of Chile)
- Hernando Vargas (Bank of the Republic - Colombia)
- Alberto Torres (Bank of Mexico)
- Adrián Armas (Central Reserve Bank of Perú)
- Thomas Connors (Board of Governors of the Federal Reserve System)
- Stephen G. Cecchetti (BIS Economic Adviser and Head of the Monetary and Economic Department)
- Fernando Avalos (Senior Economist at the BIS)
- Ramon Moreno (Head of Economics for Latin America and the Caribbean at the BIS)
Day 1 - 25 April
Chair: Luis Opazo, Head of Financial Stability, Central Bank of Chile
| Leverage, balance sheet size and wholesale funding | H. E. Damar, C. A. Meh and Y. Terajima (Bank of Canada) | Presentation Discussant: Raoul Minetti, Michigan State University | Presentation |
| Calibrating limits for large interbank exposures from a system-wide perspective | E. Batiz-Zuk, F. Lopez Gallo, S. Martínez Jaramillo, and J. P. Solórzano Margain (Bank of Mexico) | Presentation Discussant: Philipp Hartmann, European Central Bank | Presentation |
Chair: Claudio Soto, Head of Macroeconomic Analysis, Central Bank of Chile
| Spillovers of the credit default swap market | M. Calani (Central Bank of Chile) | Presentation Discussant: Eduardo Schwartz, Anderson School of Management, UCLA | Presentation |
| Contagion in CDS, banking and equity markets | R. C. de Castro Miranda, B. Miranda Tabak (Central Bank of Brazil), and M. Medeiros Junior (Universidade de Brasília) | Presentation Discussant: Brenda González-Hermosillo, International Monetary Fund | Presentation |
| Common drivers in emerging market spreads and commodity prices | D. Bastourre, J. Carrera, J. Ibarlucía and M. Sardi (Central Bank of Argentina) | Presentation Discussant: Emmanuel Mamatzakis, University of Sussex | Presentation |
Day 2 - 26 April
Chair: Claudio Raddatz, Head of Economic Research, Central Bank of Chile
| Capital flows to emerging market economies: A brave new world? | S. Ahmed and A. Zlate (Board of Governors of the Federal Reserve System) | Presentation Discussant: Joseph Byrne, University of Glasgow | Presentation |
| Do the different types of capital flows respond to the same fundamentals and in the same degree? Recent evidence for emerging markets | F. Arias, D. Garrido, D. Parra and H. Rincón (Bank of the Republic - Colombia) | Presentation Discussant: Frank Warnock, Darden School of Business, University of Virginia | Presentation |
| Foreign exchange intervention and monetary policy design: A market microstructure analysis | C. Montoro (BIS) and M. Ortiz (Central Reserve Bank of Peru) | Presentation Discussant: Paolo Vitale, University of Chieti-Pescara | Presentation |
The papers for the research network project "The effects of foreign exchange market operations in Latin America " will be made available on the project conference website. A link will be available in due course.
Chair: Stephen Cecchetti, Head of Monetary and Economic Department, BIS
| Overview - Paper presentations - Discussion of project findings | |
|---|---|
| Overview | Presenters Kathryn Dominguez (University of Michigan) and Ramon Moreno (BIS) |
| The effects of intraday foreign exchange market operations in Latin America: Results of Chile, Colombia, Mexico and Peru | Presenters: Hernan Rincon (Bank of the Republic, Colombia) and Marco Vega (Central Reserve Bank of Peru) |
| Joint paper | co-authored by Miguel Fuentes and Pablo Pincheira (Central Bank of Chile), Hernan Rincon and Juan Manuel Julio (Bank of the Republic (Colombia)), Santiago Garcia Verdu and Miguel Zerecero (Bank of Mexico), Erick Lahura and Marco Vega (Central Reserve Bank of Peru), and Ramon Moreno (BIS) |
| Order Flow and the Real: Indirect Evidence of the Effectiveness of Sterilized Interventions | E. Kohlscheen (Central Bank of Brazil) |
| Interventions and Inflation Expectations in an Inflation Targeting Economy | P. Pincheira (Central Bank of Chile) |
| On central bank interventions in the Mexican peso-dollar exchange rate market | S. Garcia-Verdú (Bank of Mexico) |