4th BIS Consultative Council for the Americas conference "Financial stability, macroprudential policy and exchange rates"


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:

Issues in financial stability. (i) Measuring financial stability; (ii) International transmission of financial shocks (eg global liquidity spillovers) and impact on domestic real activity and financial sector; (iii) external or domestic financial imbalances (eg credit growth and asset prices, currency or maturity mismatches)

Macroprudential and related policies. (i) Cost and benefits of macroprudential policy and prudential regulation, effectiveness, scope and criteria for instrument selection; (ii) Coordination of monetary and macroprudential policies, interactions; (iii) Macroprudential policy and the real economy, (iv) Institutional arrangements, implementation and communication.

Exchange rates and monetary policy. (i) Interactions with terms of trade (commodity prices) and capital flows; (ii) Exchange rate volatility, inflation dynamics, financial stability, and the real sector; (iii) 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.

The members of the Scientific Committee are: 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) and Stephen G. Cecchetti (BIS Economic Adviser and Head of the Monetary and Economic Department). Fernando Avalos (Senior Economist at the BIS) and Ramon Moreno (Head of Economics for Latin America and the Caribbean at the BIS) organised the meeting. Discussants included researchers from the European Central Bank, International Monetary Fund, and well-known academics from several universities from Europe and the United States.