Globalization and Monetary Policy Institute
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Globalization and Monetary Policy Institute Events
Capital Flows, International Financial Markets and Financial Crises
November 13–14, 2009
Federal Reserve Bank of Dallas
Sponsored by
Federal Reserve Bank of Dallas and Bank of Canada.
The recent turmoil in financial markets has led to a reevaluation of the relationship between financial globalization, financial stability and financial crises. The global fallout following the U.S. subprime mortgage crisis was unexpected in its severity and has pointed towards new and little-understood magnification effects of financial market shocks, operating at both domestic and international levels.
While standard theory suggests that financial globalization helps spread risk and enhances international economic and financial stability, the crisis seems to have uncovered new channels of financial propagation, including instability associated with sharp currency movements. Academics and policymakers are struggling to understand these new channels and their lessons for policymaking. In addition, the crisis has brought new urgency to the understanding of global imbalances and the direction and stability of international capital flows.
Topics considered include:
- Financial Globalization and Monetary Policy
- International Financial Propagation
- International Monetary Policy Cooperation
- Stability of International Financial Markets
- Global Imbalances and Financial Stability
- Procyclical Capital Flows and Asset Prices
Organizing committee
- Mark Wynne, Federal Reserve Bank of Dallas
- Larry Schembri, Bank of Canada
- Michael Devereux, University of British Columbia
- Ananth Ramanarayanan, Federal Reserve Bank of Dallas
- Ali Dib, Bank of Canada
Note: Attendance is by invitation only.
Program Agenda
Friday, November 13 |
| 7:30 a.m. |
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Breakfast |
| 8:20 a.m. |
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Introductory remarks |
Session I |
| 8:30 a.m. |
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"How Did a Domestic Housing Slump Turn into a Global Financial Crisis," by Steve Kamin and Laurie Pounder, Federal Reserve Board |
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Presenter: Steve Kamin |
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Discussant: Larry Schembri, Bank of Canada |
| 9:30 a.m. |
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"Real Effects of the 2007-08 Financial Crisis around the World," by Hui Tong, IMF and Shang-Jin Wei, Columbia University and NBER |
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Presenter: Hui Tong |
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Discussant: Philip Maier, Bank of Canada |
| 10:30 a.m. |
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Break |
| 10:45 a.m. |
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"Financial Integration and Business Cycle Synchronization," by Sebnem Kalemli-Ozcan, University of Houston and NBER; Elias Papaioannou, Dartmouth College and CEPR; and José Luis Peydró, European Central Bank |
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Presenter: Sebnem Kalemli-Ozcan |
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Discussant: Frank Warnock, University of Virginia; |
| 11:45 a.m. |
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"Balance Sheet Linkages, Global De-leveraging, and the International Transmission of Business Cycles," by Michael Devereux, University of British Columbia and James Yetman, Bank for International Settlements, Hong Kong |
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Presenter: Mick Devereux, University of British Columbia |
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Discussant: Alessandro Rebucci, Inter-American Development Bank |
| 12.45 p.m. |
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Lunch |
Session II |
| 2 p.m. |
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"Credit and Interbank Markets in a New Keynesian Model" by Ali Dib, Bank of Canada |
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Presenter: Ali Dib |
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Discussant: Federico Mandelman, Federal Reserve Bank of Atlanta |
| 3 p.m. |
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"Domestic Financial Frictions: Implications for International Risk Sharing, Real Exchange Rate Volatility and International Business Cycles," by Robert Kollmann, Université Libre de Bruxelles |
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Presenter: Robert Kollmann |
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Discussant: Simona Cociuba, Federal Reserve Bank of Dallas |
| 4 p.m. |
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Break |
| 4:30 p.m. |
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"What Happened to the Good Old Days? The Role of Expenditure Switching in the Global Imbalance Adjustment," by Wei Dong, Bank of Canada |
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Presenter: Wei Dong |
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Discussant: Viktoria Hnatkovska, University of British Columbia; |
| Reception / Dinner |
Saturday November 14 |
| 7:30 a.m. |
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Breakfast |
Session III |
| 8:30 a.m. |
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"Excessive Volatility in Capital Flows: A Pigouvian Taxation Approach," by Olivier Jeanne, Johns Hopkins University and Anton Korinek, University of Maryland |
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Presenter: Olivier Jeanne |
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Discussant: David Cook, Hong Kong University of Science and Technology |
| 9:30 a.m. |
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"Sovereign Default and Banking," by Igor Livshits, University of Western Ontario |
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Presenter: Igor Livshits |
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Discussant: Ananth Ramanarayanan, Federal Reserve Bank of Dallas |
| 10:30 a.m. |
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Break |
| 10.45 a.m. |
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"Sudden Stops, Financial Crises and Leverage: A Fisherian Deflation of Tobin's Q," by Enrique Mendoza, University of Maryland |
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Presenter: Enrique Mendoza |
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Discussant: Christine Arellano, Federal Reserve Bank of Minneapolis |
| 11:45 a.m. |
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"Why Do Emerging Economies Import Direct Investment and Export Savings? A Story of Financial Underdevelopment," by Diego Valderrama, Federal Reserve Bank of San Francisco and Katherine Smith, U.S. Naval Academy |
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Presenter: Diego Valderrama |
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Discussant: Ron Alquist, Bank of Canada |
| 12:45 p.m. |
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Lunch |
| 1:30 p.m. |
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Conference Adjourn |
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