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Macroprudential policy workshop 2011

This March 2011 workshop discussed macroprudential policy and the use of tools (often prudential tools) for the purposes of enhancing financial stability and macroeconomic stabilisation.

Past Event
Friday, 11 March 2011 to Friday, 11 March 2011
9:00 am - 5:00 pm
Reserve Bank of New Zealand

Macroprudential policy is the use of tools (often prudential tools) for the purposes of enhancing financial stability and macroeconomic stabilisation. A prominent example is the recent BCBS proposal for a countercyclical capital ratio. The prospect of macroprudential policy raises issues around purpose, design, governance and interaction with other policy tools.

Organisers:
David Hargreaves
Bernard Hodgetts

Welcome and opening:
Governor Alan Bollard (RBNZ)

Programme

Session 1

Bank failures and the cost of systematic risk: Evidence from 1900-1930
Presented by: Paul Kupiec (FDIC)
Discussant: Andrew Coleman (Otago/MOTU)

Systematic risk contributions
Presented by: Haibin Zhu

Session 2

Macroprudential instruments for New Zealand: A preliminary assessment
Presented by: Bernard Hodgetts and Yuong Ha (RBNZ)
Discussant: Shamubeel Eaqub (NZIER)

Session 3

Panel discussion: Macroprudential policy and macroeconomic stabilisation
Presented by: Gordon Thiessen (former Governor, Bank of Canada), Ryoo Sang Chul (Bank of Korea), David Mayers (Auckland) and David Tripe (Massey)

Complexity, concentration and contagion
Presented by: Prasanna Gai (Auckland) (joint with Andy Haldane and Sujit Kapadia (Bank of England))
Discussant: David Hargreaves (RBNZ)

Session 4

Financial imbalances and financial fragility
Presented by: Frederic Boissay (ECB)
Discussant: Marion Kohler (RBA)

Closing comments:
Deputy Governor Grant Spencer (RBNZ)