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Macro policies after the crisis 2011

This 2011 conference aimed to draw together theoretical and empirical work on what motivates new macro policies, the effective use of policy instruments, and the interaction between policies.

Past Event
Monday, 12 December 2011 to Tuesday, 13 December 2011
9:00 am - 5:00 pm
Reserve Bank of New Zealand

On 12–13 December 2011, we hosted a conference on 'Macro policies after the crisis'.

Topics of interest included, but were not limited to:

  • externalities and efficient policy responses
  • credit booms and deleveraging
  • the roles of debt and financial intermediation in macroeconomic fluctuations
  • macroeconomic effects of new and proposed macroprudential policies
  • interactions among monetary, fiscal and macroprudential policies
  • interactions between financial imbalances and fiscal balance sheets
  • related governance and communication issues.

Keynote speakers
Enrique Mendoza (Maryland)
Bruce Preston (Colombia/CAMA)

Welcome and opening
Alan Bollard

Programme for Monday 12 December

Session 1: In the beginning there was housing...

Session chair: Christie Smith (Reserve Bank of New Zealand)

Housing finance and financial stability
Presented by: Veronica Warnock (Darden Graduate School of Business, University of Virginia)
Discussant: Andrew Coleman (University of Otago and MOTU)

Leaning against boom-bust cycles in credit and housing prices
Presented by: Maria Teresa Punzi (University of Nottingham)
Discussant: Christopher Otrok (University of Missouri)

Session 2

Session chair: Anella Munro (Reserve Bank of New Zealand)

Keynote speech: Financial innovation, the discovery of risk and macroprudential policy
Presented by: Enrique Mendoza (University of Maryland)

Session 3: Contagion and credit quality

Session chair: Enzo Cassino (Reserve Bank of New Zealand)

The effect of the interbank network structure on contagion and common shocks
Presented by: Co-Pierre Georg (University Carlos III Madrid)
Discussant: Christie Smith (Reserve Bank of New Zealand)

Endogenous credit ratings
Presented by: José Jorge (University of Porto)
Discussant: David Mayes (University of Auckland)

Session 4: Imbalances in multi-country models

Session chair: Jonathan Kearns (Reserve Bank of Australia)

Monetary and macro-prudential policy in an estimated DSGE model of the euro area
Presented by: Dominic Quint (Free University of Berlin)
Discussant: Stephen Murchison (Bank of Canada)

A three-country intertemporal model of global imbalances in a deleveraging world
Presented by: David Vines (University of Oxford and CAMA)
Discussant: Frank Warnock (Darden Graduate School of Business, University of Virginia)

Programme for Tuesday 13 December 2011

Session 5: International financial markets and small open economies

Session chair: David Hargreaves (Reserve Bank of New Zealand)

Business cycles and financial intermediation in emerging economies
Presented by: Christoph Große Steffen (The German Institute for Economic Research)
Discussant: Jonathan Kearns (Reserve Bank of Australia)

The macroeconomics effects of a stable funding ratio
Presented by: Anella Munro (Reserve Bank of New Zealand)
Discussant: Maria Teresa Punzi (University of Nottingham)

Session 6

Session chair: Nicolas Groshenny (Reserve Bank of New Zealand)

Keynote speech: Monetary and fiscal policy under imperfect knowledge
Presented by: Bruce Preston (Columbia University and Australian National University)

Session 7: Occasionally binding constraints

Session chair: Debasis Bandyopadhyay (University of Auckland)

Financial crisis and macro-prudential policies
Presented by: Chris Otrok (University of Missouri)
Discussant: Enrique Mendoza (University of Maryland)

Modifying Gaussian term structure models when interest rates are near the zero lower bound
Presented by: Leo Krippner (Reserve Bank of New Zealand)
Discussant: Toby Daglish (Victoria University of Wellington)

Session 8: Exit strategy

Session chair: John McDermott (Assistant Governor and Head of Economics, RBNZ)

Exits from recessions: The U.S. experience 1920-2011
Presented by: John Landon-Lane (Rutgers University)
Discussant: Michael Reddell (Reserve Bank of New Zealand)