2nd BIS Consultative Council for the Americas conference on "Monetary policy, financial stability and the business cycle"


On 12-13 May 2011 the BIS held a conference on "Monetary policy, financial stability and the business cycle", the second 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 Bank of Canada in Ottawa.

A Scientific Committee, led by Stephen G Cecchetti, and comprising CCA central bank heads of research, selected papers on the following topics:

  • Monetary policy and financial stability. (i) Complementarities and trade-offs; (ii) Asset price bubbles.
  • Financial system risks. (i) Measurement, modelling and monitoring; (ii) Network effects, interaction between financial institutions and financial markets; (iii) Issues of financial development (eg role of incomplete markets, trade-off between financial development and financial stability); (iv) Bank Efficiency, competition and financial stability; (v) Credit and concentration risk, stress testing.
  • Business cycles, credit cycles and linkages between financial and real sectors. (i) Forecasting and nowcasting, turning points, data uncertainty, common cycles in sectors and countries; (ii) Procyclicality and credit demand; (iii) Feedback effects, interaction between macroeconomic policy and macroprudential policy, macroeconomic impact of macroprudential policy.
  • Capital flows: implications and policy responses. (i) Monetary policy and financial stability issues raised by capital flows; (ii) Policy measures to deal with capital inflows (eg capital controls).

The members of the Scientific Committee were: Jorge Carrera (Central Bank of Argentina), Adriana Soares Sales (Central Bank of Brazil), Allan Crawford (Bank of Canada), Luis Oscar Herrera (Central Bank of Chile), Manuel Ramos Francia (Bank of Mexico), Thomas Connors and Michael Leahy (US Federal Reserve Bank) and Stephen G. Cecchetti (BIS Economic Adviser and Head of the Monetary and Economic Department). Carlos Montoro (Senior Economist at the BIS Representative Office for the Americas) and Ramon Moreno (Head of Economics for Latin America and the Caribbean at the BIS) organised the meeting. Discussants included central bank researchers from the region, the Bank of France and well-known academics from New York University, University of Illinois, Johns Hopkins University, Rutgers University, University of California - San Diego and University of North Carolina.