The workshop aims to address frontier issues in the area of international capital flows, discussing how capital flows are affected by cyclical factors, such as inflation-driven monetary policy changes in advanced economies, by a more fragmented international financial system, by the growing role of non-bank financial institutions (NBFIs), and by long-run structural drivers, such as digitalization and climate change. In addition, the workshop will seek to identify the appropriate mix of policy tools – including capital flow management measures (CFMs), currency-based measures (CBMs), macroprudential measures, monetary policy tools, and foreign exchange intervention – to mitigate the volatility of capital flows and the risks emanating from it.
The one-day workshop will bring together academics and policy makers to deepen our understanding of global capital flows. The workshop will be held at the Bank of England in London on 4 October 2024.
The event will feature a keynote speech from Helene Rey, Lord Bagri Professor of Economics at London Business School, and a high-level panel discussion that will address frontier issues on capital flows and key policy challenges.
Program
| 9:00am |
Opening Remarks
Sarah Breeden (Bank of England) |
| 9:10am |
Session 1: Granularity, Exchange Rates and Capital Flows
Chair: Tjoervi Olafsson (IMF) |
| 9:10am |
Cross-Currency Basis Risk and International Capital Flows
Quentin Vandeweyer (University of Chicago) with Christian Kubitza and Jean-David Sigaux) |
| 9:35am |
Discussion: Hillary Stein (Federal Reserve Bank of Boston) |
| 9:50am |
Q & A |
| 10.00am |
The Granular Origins of the Global Financial Cycle
Mathias Hoffmann (University of Zurich) with Nicola Benigni, Torsten Ehlers, Boris Hofmann and Christian Schmieder |
| 10:25am |
Discussion: Simon Lloyd (Bank of England) |
| 10:40am |
Q & A |
| 10:50am |
Coffee Break |
| 11:10am |
Keynote speaker
Helene Rey (London Business School)
Chair: Ambrogio Cesa-Bianchi |
| 12:00pm |
Q & A |
| 12:10pm |
Lunch |
| 1:20pm |
Policy Panel
Chair: James Talbot (Bank of England)
Panelist: Laura Alfaro (Harvard Business School)
Panelist: Beata Javorcik (EBRD, University of Oxford)
Panelist: Ana Novik (OECD) |
| 2:20pm |
Coffee Break |
| 2:40 pm |
Session 2: Capital flow booms and busts
Chair: Valerio Nispi Landi (Banca d’Italia) |
| 2:40 pm |
Capital Allocation and Firm Dynamics in Small Open Economies |
| 3:05pm |
Felipe Camêlo (New York University, IMF)
Discussion: Felipe Saffie (University of Virginia) |
| 3:20pm |
Q & A |
| 3:30pm |
Global Effects of Foreign Exchange Interventions
|
| 3:55pm |
Marcin Kolasa (IMF) with Aleksandra Babii and Jesper Lindé
Discussion: Paolo Cavallino (BIS) |
| 4:10pm |
Q & A |
| 4:20pm |
Coffee Break |
| 4:40pm |
Session 3: Global Financial Cycles and Emerging Markets
Chair: Winfrid Blaschke (OECD) |
| 4:40pm |
Monetary Policy and the Short-Rate Disconnect in Emerging Economies
Sebnem Kalemli-Özcan (University of Maryland) with Pierre De Leo and Gita Gopinath |
| 5:05pm |
Discussion: Ida Hjortsoe (Bank of England) |
| 5:20pm |
Q & A |
| 5.30pm |
The fickle and the stable: Global Financial Cycle transmission via heterogeneous investors
Haonan Zhou (Princeton University) |
| 5:55pm |
Discussion: Veronica de Falco (Imperial College London) |
| 6:10pm |
Q & A |
| 6:20pm |
Closing Remarks
Kai Arvai, Valentin Burban, Julia Schmidt (Banque de France) |
| 6:30pm |
End of the Workshop |