The Role of Financial Intermediaries in Monetary Policy Transmission

19 and 20 June 2013
Amsterdam

The conference is sponsored jointly by De Nederlandsche Bank, the Journal of Economic Dynamics and Control and the European Banking Center at Tilburg University.

Keynotes
Anil Kashyap of the University of Chicago Booth School of Business and Frank Smets of the European Central Bank have agreed to deliver keynote addresses at the conference.

Program

Wednesday June 19

8:30 – 9:00 Coffee and Registration

9:00 – 10.00 Plenary Talk by Anil Kashyap (Chicago Booth)

SESSION 1: REAL-FINANCIAL LINKAGES
Chair: Job Swank (De Nederlandsche Bank)

10.00 – 10.50
Bank Lending Channels During the Great Recession
Seung Jung Lee, Samuel Haltenhof and Viktors Stebunovs* (FRB)
Discussant: Oscar Arce (Bank of Spain)

10.50 – 11.20: Coffee break

11.20 – 12.10
Firms’ Finance, Cyclical Sensitivity and the Role of Monetary Policy
Anastasia Zervou (Texas A&M University)
Discussant: Vivien Lewis (Leuven University)

12.10 – 13.00
Verifying the State of Financing Constraints: Evidence from U.S. Business Credit Contract
Ralf Meisenzahl (FRB)
Discussant: Olivier Pierrard (Central Bank of Luxembourg)

13.00 – 14.30: Lunch

SESSION 2: MONETARY POLICY
Chair: Damjan Pfajfar (Tilburg University)

14.30 – 15.20
Unconventional Government Debt Purchases as a Supplement to Conventional Monetary Policy
Martin Ellison* (Oxford University) and Andreas Tischbirek
Discussant: Andreas Schabert (University of Dortmund)

15.20 – 16.10
Financial Capital and the Macroeconomy: Policy Considerations
Michael Kiley* (FRB) and Jae W. Sim
Discussant: Oreste Tristani (ECB)

16.10 – 16.40: Coffee break

16.40 – 17.30
The Effectiveness of the Non-Standard Policy Measures during the Financial Crises: The Experiences of the Federal Reserve and the European Central Bank
Jens Eisenschmidt* (ECB), S. Carpenter and S. Demiralp
Discussant: Tiziano Ropele (Bank of Italy)

19.00: Conference Dinner

Program

Thursday June 20

9.00 – 10.00: Plenary Talk by Frank Smets (ECB and CEPR)

SESSION 3: DSGE MODELS AND FINANCIAL RISK
Chair : Jakob de Haan (De Nederlandsche Bank)

10.00 – 10.50
The Effect of the Maturity of Government Debt on Financial Fragility in the Presence of Sovereign Default Risk
Sweder van Wijnbergen* (University of Amsterdam) and Christiaan van der Kwaak
Discussant: Keith Kuester (University of Bonn)

10.50 – 11.20: Coffee break

11.20 – 12.10
Endogenous Risk in a DSGE Model with Capital-constrained Financial Intermediaries
Raf Wouters* (National Bank of Belgium) and Hans Dewachter
Discussant: Jose Dorich (Bank of Canada)

12.10 – 13.00
Should Monetary Policy Lean Against the Wind? An Analysis Based on a DSGE Model with Banking
Federico Signoretti* (Bank of Italy) and Leonardo Gambacorta
Discussant: Egon Zakrajsek (FRB)

13.00 – 14.30: Lunch

SESSION 4: BANKING AND FINANCIAL INNOVATION
Chair: Thorsten Beck (Tilburg University)

14.30 – 15.20
Financial Innovation and Bank Behavior: Evidence from Credit Markets
Lars Norden* (Erasmus University), Consuelo Silva Buston and Wolf Wagner
Discussant: Neeltje van Horen (De Nederlandsche Bank)

15.20 – 16.10
Understanding the Accumulation of Bank and Thrift Reserves during the U.S. Financial Crisis
Su-Hsin Chang, Silvio Contessi and Johanna L Francis* (Fordham University)
Discussant: Steffan Ball (FRB)

16.10 – 16.40: Coffee break

16.40 – 17.30
In Search for Yield? Survey-Based Evidence on Bank Risk Taking
Claudia Buch (Tubingen University), Sandra Eickmeier and Esteban Prieto*
Discussant: Andrea Nobili (Bank of Italy)

Concluding remarks

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Call for Papers
The aim of the conference is to foster the discussion about the interaction between the financial sector and the real economy and their implications for the conduct of monetary policy and financial regulation. The recent financial crisis has stimulated both theoretical and empirical research on the propagation mechanisms underlying the business cycles, in particular the role of financial frictions. Many issues concerning the interactions between banking and monetary policy forced policy designers to redefine economic policies, and motivated macroeconomists to understand the implications of financial intermediation constraints on asset price fluctuations, the behavior of non-financial firms, households, governments and in turn on real macroeconomic performance. This conference will showcase innovative research on the role of financial intermediaries and financial frictions in the transmission of monetary policy and how to design both the new banking regulatory and supervisory structures and monetary policy in order to stabilize the economy.

The Journal of Economic Dynamics and Control will publish a special conference issue and we strongly urge all presenters to submit their papers to this issue, subject to the regular JEDC processes. When submitting, please indicate whether you intend to submit your paper to the special issue or not.

We have invited both empirical and theoretical papers. Topics would include, but are not limited to:
• DSGE models with banking sector and/or financial frictions and/or risk premia (also estimation of these models)
• The behavior of banks during the recent crisis, and more generally over the business cycle
• Credit channel of the monetary policy
• Macroprudential regulation, financial regulation and financial stability in the light of recent financial crisis
• Effects of quantitative easing on the banking sector and the real economy
• Transmission of monetary and fiscal policy (also potential asymmetries over the business cycle due to financial frictions)
• Optimal monetary policy in a DSGE model with banking sector and/or financial frictions and/or risk premia
• Firms dynamics over the business cycles
• Financial Markets and unemployment fluctuations in DSGE models.
• Bank-firm interactions over the business cycle
• The nexus of zero lower bound and financial frictions and its effects on the transmission of (monetary policy) shocks

The sponsors will cover economy class travel, hotel accommodations and miscellaneous expenses for presenting authors and all other invited participants.

Program Committee
• Tobias Adrian (FRB New York)
• Thorsten Beck (EBC, Tilburg University)
• Andrea Colciago (De Nederlandsche Bank)
• Damjan Pfajfar (EBC, Tilburg University)
• Hyun Song Shin (Princeton University)
• Oreste Tristani (European Central Bank)
• Emmanuel de Veirman (De Nederlandsche Bank)
• Wolf Wagner (EBC, Tilburg University)
• Egon Zakrajsek (Federal Reserve Board)

Submission guidelines
Papers should have been submitted by January 15, 2013 via e-mail to ebc@tilburguniversity.edu. Manuscripts should not be under review at any other journal. Decisions have been made per March 20 and successful authors were notified shortly thereafter.

Participating
Participation for this conference is limited and by invitation only.