Posted 11/6/09
CALL FOR PAPERS
THE BANK OF CANADA CONFERENCE ON
FINANCIAL GLOBALIZATION AND FINANCIAL INSTABILITY:
CAUSE AND EFFECT?
Ottawa, Canada
October 28-29, 2010
The Bank of Canada will host a conference on "Financial
Globalization and Financial Instability: Cause and Effect?"
in Ottawa, Canada on October 28 and 29, 2010. This
conference will provide an opportunity for researchers from
academia and central banks to discuss a wide range of
theoretical and empirical issues regarding recent problems
with financial market stability that may arise from
financial globalization.
There is an existing literature on the benefits of
financial globalization for countries and firms. F What has
not been as well studied are the costs, which include a
(possibly) increased risk of financial instability. This
could come from an increase in the demand for liquidity,
regulatory arbitrage, increased likelihood of contagion,
etc. We are also interested in papers that explore the
reverse causality; i.e., whether the current crisis (or
instability in general) will result in a permanently lower
level of international financial market integration.
KEYNOTE SPEAKER:
Eswar Prasad, Tolani Senior Professor of Trade Policy at
Cornell University and a Senior Fellow at the Brookings
Institution will deliver the keynote address.
TOPICS:
Possible topics include, but are not limited to, the
following:
(i) Market inefficiencies and cross-border capital
flows: What drives cross-border capital flows? How do they
affect/are affected by asset prices? How does asymmetric
information affect these flows? How does the time-varying
pricing of asymmetric information and moral hazard in
markets contribute to financial market instability? Why
does capital not flow from developed to developing
countries? Will the crisis lead to a permanent reduction in
capital flows? What caused and is causing the changing role
of banks in international capital flows?
(ii) Financial integration and macroeconomic volatility:
Has the globalization of financial markets
contributed to the 'great moderation' or resulted in an
increased likelihood of financial crises? What will happen
to financial integration after the crisis?
(iii) Global imbalances and the crisis: How have the
current account positions of the US and the ROW
contributed to the crisis? Are they sustainable? If not,
how will they be resolved? Can the 'exorbitant privilege'
continue?
(iv) Liquidity and financial market innovation: How has
the globalization of financial markets changed the
aggregate amount of liquidity and its price? Are markets
now more or less vulnerable to "sudden stops" and "fire
sales" of assets? What caused the breakdown in the FX swap
market and what does it say about the appropriate
management of liquidity within international banks? What is
the prospect for future financial innovation?
(v) The uncertain links between the real global economy
and asset prices: What macroeconomic factors drive asset
prices in international settings? Are models capable of
identifying speculative excesses, bubbles, etc. in
integrated financial markets? How do behavioural aspects
affect asset prices?
(vi) Volatility and contagion: What can we learn from
the recent crisis about our models of contagion/volatility
that were developed during previous crises? Are we able to
predict crises and contagion with any degree of accuracy?
(vii) Monetary policy: Should central banks change their
monetary policy rules (e.g., inflation targeting) to
stabilize the financial system? How should this be done in
a world of open capital accounts? How would the endogenous
effect on asset prices influence real activity?
(viii) Regulation: How should regulators change their
rules to account for globalized markets or firms? Should
regulators impose taxes or regulations to reduce capital
flows or other cross border transactions?
PAPER SUBMISSION PROCEDURE:
Anyone interested in presenting research at this conference
should send a draft of their paper or a detailed abstract
in electronic form to:
CONTACT: Greg Bauer
Email: MAILTO:gbauer@bankofcanada.ca
by July 2, 2010. The authors of accepted papers will be
notified by the end of July, 2010. The Bank of Canada will
cover reasonable travel expenses for the author presenting
the research and for discussants.
PARTICIPATION:
The Bank invites interested academics and practitioners to
attend the workshop and to be discussants. There is no fee
for participation, but non-presenting and non-discussing
participants will be responsible for their own expenses. If
you are interested in attending, please send an e-mail to:
CONTACT: Greg Bauer
Email: MAILTO:gbauer@bankofcanada.ca
no later than October 1, 2010.