Incorporating financial stability considerations into central bank policy models

29 January 2015

Closing conference of the BIS CCA Research Network, hosted by the BIS Office for the Americas, Mexico City, 29-30 January 2015

Thursday 29 January 2015

08:50-09:20  Registration

Welcome remarks
Enrique Alberola (Chief Representative, BIS Office for the Americas) and Hyun Song Shin (Economic Adviser and Head of Research, BIS)


Paper presentations: 30 minutes - Discussion: 15 minutes - Open discussion: 15 minutes


Session I
Chair: Hernando Vargas (Bank of the Republic, Colombia)

09:40-10:40 1.

Credit and macroprudential policy in an emerging economy: a structural model assessment by Horacio Aguirre and Emilio Blanco (Central Bank of Argentina) (paper, presentation)
Discussant: Jose Dorich (Bank of Canada) (presentation)

10:40-11:40 2.

Foreign capital flows, credit growth and macroprudential policy in a DSGE model with traditional and matter-of-fact financial frictions by Fabia de Carvalho and Marcos Castro (Central Bank of Brazil) (paper, presentation)
Discussant: Pierpaolo Benigno (Luiss Guido Carli University) (presentation)

12:00-13:00 3.

Optimal mix of monetary, fiscal and macroprudential policies by Sami Alpanda, Gino Cateau and Tamon Takamura (Bank of Canada) (presentation)
Discussant: Javier Bianchi (University of Wisconsin-Madison) (presentation


Session II
Chair: Daniel Sámano-Peñaloza (Banco de Mexico)

15:00-16:00 4.

Monetary and macroprudential policy mix: an institution-design approach by Jessica Roldán, Victoria Nuguer and Julio Carrillo (Bank of Mexico) (paper, presentation)
Discussant: Ben Hunt (IMF) (presentation)

16:00-17:00 5.

Spillovers: the role of prudential regulation and monetary policy in small open economies by Paul Castillo, Cesar Carrera, Marco Ortiz and Hugo Vega (Central Reserve Bank of Peru) (paper, presentation)
Discussant: Lawrence Christiano (Northwestern University) (presentation)


Special session I
Chair: Enrique Alberola (Bank for International Settlements)


Joint project: Incorporating financial stability considerations in policy analysis: a model for Latin American countries by Javier Garcia-Cicco and Markus Kirchner (Central Bank of Chile), Julio Carrillo (Bank of Mexico), Diego Rodriguez and Franz Hamann (Bank of the Republic, Colombia), Fernando Perez (Central Reserve Bank of Peru), Carlos Montoro (FLAR) and Roberto Chang (Rutgers University) (40 min.) (presentation)
Discussant: Michael Devereux (University of British Columbia) (presentation)


Friday 30 January 2015


Session III
Chair: Pierpaolo Benigno (Luiss Guido Carli University)

 09:30-10:30 6.

Macroeconomic and financial interactions in Chile: an estimated DSGE approach by Javier Garcia-Cicco and Markus Kirchner (Central Bank of Chile) (paper, presentation)
Discussant: Stephanie Schmitt-Grohe (Columbia University) (presentation)

10:30-11:30 7. 

Monetary policy implications for an oil-exporting economy of lower long-run international oil prices by Jesús Bejarano, Franz Hamann and Diego Rodriguez (Bank of the Republic, Colombia) (paper, presentation)
Discussant: Martin Uribe (Columbia University) (presentation)

11:50-12:50 8.

Macroeconomic effects of banking sector losses across structural models by Luca Guerrieri and Matteo Iacoviello (Board of Governors, Federal Reserve) (paper, presentation)
Discussant: Gianluca Benigno (London School of Economics) (presentation)


Special session II
Chair: Hyun Song Shin (Bank for International Settlements)


A proposed methodology to analyse macroprudential policies in Latin American economies by Enrique Mendoza (U Pennsylvania) and Javier Bianchi (U Wisconsin-Madison) (40 min.) (paper, presentation)
General discussion (20 minutes)


Central bank roundtable: bringing policy models to practice: issues and challenges
Rhys Mendes (Deputy Chief Canadian Economic Department, Bank of Canada) (presentation),
Hernando Vargas (Deputy Technical Governor, Bank of the Republic Colombia) (presentation) and
Alberto Torres (Director General Economic Research, Bank of Mexico) (presentation)


Closing Remarks by Hyun Song Shin (Economic Adviser and Head of Research Bank for International Settlements)