Inflation dynamics: the role of labour markets, productivity and globalization

19 May 2016

Seventh BIS CCA Research Conference on "Inflation dynamics: the role of labour markets, productivity and globalization", hosted by the Central Reserve Bank of Peru, Lima, 19-20 May 2016

Thursday 19 May 2016


Opening remarks
Julio Velarde (Governor of the Central Reserve Bank of Peru)


Session I - Wage and Price Setting
Chair: Enrique Alberola (Bank for International Settlements)


Endogenous wage indexation and aggregate shocks by Julio A. Carrillo Gert Peersman and Joris Wauters (Bank of Mexico) (paper, appendix, presentation)
Discussant: Giorgio Primiceri (Northwestern University) (discussion)


Wage and price setting: New evidence from Uruguayan firms by Fernando Borraz, Gerardo Licandro and Daniela Sola (Central Bank of Uruguay) (paper, presentation)
Discussant: Charles Engel (University of Wisconsin) (discussion)


Session II - Exchange Rates, Interest Rates and Pass-Through
Chair: Marco Vega (Central Reserve Bank of Peru)


Nonlinear pass-through of exchange rate shocks on inflation: A Bayesian Smooth Transition VAR approach by Hernán Rincón and Norberto Rodríguez (Bank of the Republic of Colombia) (paper - later published as BIS Working Papers, no 690 - presentation)
Discussant: David Parsley (Vanderbilt University) (discussion)


Pass-through, expectations and risks. What affect Chilean banks' interest rates? by Michael Pedersen (Central Bank of Chile) (paper, presentation)
Discussant: Alessandro Rebucci (Johns Hopkins University) (discussion)


Session III - Credit Conditions, Unemployment and Inflation
Chair: Ramon Moreno (Bank for International Settlements)


Downward nominal wage rigidity in Canada: Evidence against a 'greasing effect' by Joel Wagner (Bank of Canada) (paper, presentation)
Discussant: Federico Ravenna (HEC Montreal) (discussion)


Friday 20 May 2016

09:30 - 10:20

Session III - Credit Conditions, Unemployment and Inflation (continued)


Unemployment and gross credit flows in a New Keynesian framework by David Florian-Hoyle and Johanna L. Francis (Central Reserve Bank of Peru) (paper, presentation)
Discussant: Raoul Minetti (Michigan State University) (discussion)

10:20 - 11:10

Session IV - Productivity, Price Stickiness and the Labour Market Participation
Chair: Adrian Armas (Central Reserve Bank of Peru)


Labor demand management in search equilibrium by Cynthia L. Doniger and David López-Salido (Board of Governors of the Federal Reserve System) (paper, presentation)
Discussant: Russell Cooper (Penn State University) (discussion)

11:30 - 12:20  

Labor markets in heterogenous sectors by Sergio A. Lago Alves (Central Bank of Brazil) (paper, presentation)
Discussant: Peter Rupert (University of California, Santa Barbara) (discussion)


Conclusions and final remarks 
Enrique Alberola (Chief Representative, Bank for International Settlements, Office for the Americas)

N.B. Paper presentations: 25 minutes - Discussion: 15 minutes - Open discussion: 10 minutes. The presenters of the papers appear in bold.