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Inflation Spillovers of Conventional and Unconventional Monetary Policy: The Role of Real and Financial Linkages

July 09–10, 2015 Zurich

The Swiss National Bank (SNB), together with the Bank for International Settlements (BIS), the Globalization of Monetary Policy Institute at the Federal Reserve Bank of Dallas and Center for Economic Policy Research (CEPR), will organize a one-and-a-half day conference on “Inflation Spillovers of Conventional and Unconventional Monetary Policy: The Role of Real and Financial Linkages” to be held in Zurich on July 9–10, 2015.

Thomas Jordan (chairman of the SNB’s governing board) and Claudio Borio (head of the Monetary and Economic Department at BIS) will deliver keynote speeches.

Selected papers presented in the conference will be considered for an expedited review process for a Journal of International Money and Finance special issue titled “Spillovers of Conventional and Unconventional Monetary Policy,” which will be scheduled to be published in 2016. Since its launch in 1982, the Journal of International Money and Finance has built up a solid reputation as a high-quality scholarly journal devoted to theoretical and empirical research in the fields of international monetary economics, international finance and the rapidly developing overlap area between the two.

The Financial and the European Debt Crises prompted extraordinary policy responses on the part of central banks around the world. Some of these policy responses were coordinated, but all were directed at fulfilling domestic mandates for price stability and financial stability. Fears that the dramatic expansion of central bank balance sheets would lead to higher inflation at the consumer level have so far proven unfounded, whether due to still abundant slack in many countries or well-anchored inflation expectations. But it has been argued that an extended period of ultra-easy monetary policy is manifesting itself in excessive risk taking, bubbles in certain asset classes and price pressures in countries that are recipients of capital in search of yield that will ultimately lead to higher inflation globally. At the same time, the rapidly growing emerging and developing economies account for a larger share of global exports. Recent evidence has linked this export boom to declines in prices, wages, and manufacturing employment in advanced economies. The disinflationary impact of the integration of low-wage economies onto the global trading system has challenged our understanding of the price setting process and the definition of the output gap at the national and international level.