Call For Papers
Second Conference of the ESCB Macro-prudential Research (MaRs) Network

Hosted by the European Central Bank, 30-31 October 2012

The European Central Bank (ECB) is inviting submission of papers to the 2nd conference of the European System of Central Banks (ESCB) Network on "Macro-prudential Research" (MaRs). The objectives of the conference are: 1) to present state-of-the-art international research answering the main research questions of MaRs 2) to provide a forum for debate among market participants, policy makers and researchers. Relevant empirical, policy-oriented and theoretical research will be considered.

TOPICS: The submission of research papers in the following fields is especially encouraged:
1. Macro-financial models linking financial stability and the performance of the economy:
- Representations of widespread financial instability in aggregate models
- Transmission channels of financial instability in aggregate models, in particular the role of nonlinearities, amplification, feedback and confidence effects
- Characterisations of the leverage cycle
- Models assessing the effectiveness of macro-prudential policies and their interaction with monetary policy

2. Models and tools for the early identification and assessment of systemic risk:
- Financial stress and systemic risk indices
- Early warning models and indicators (e.g. for the early identification of risks of banking crises or boom/bust episodes in credit and asset markets)
- Vulnerabilities emerging from the link between fiscal activities and the financial sector
- Conceptual frameworks of early warning systems
- Major advances in stress-testing methodologies

3. Assessing contagion risks
- Cross-border and cross-sectoral contagion risks among financial intermediaries
- Distinctions and relationships between financial contagion and unravelling of widespread imbalances (bubbles)
- Feedback effects and contagion risk
- Sovereign contagion and the transmission of instability between sovereigns and financial intermediaries

4. Macro-prudential regulatory policy instruments:
- Regulations that lead banks and other financial intermediaries (insurance and reinsurance companies, pension funds etc.) to internalise any systemic risks they may cause
- How can regulatory arbitrage across different intermediaries and markets be contained that would circumvent macro-prudential regulations?
- Market regulations and accounting rules contributing to systemic stability (e.g. margin requirements, short-sale restrictions, fair value versus historical cost accounting)
- Policy instruments limiting procyclicality in the financial system and the emergence of credit booms and asset price bubbles, including measures addressing the incentive problems that contribute to the widespread build-up of imbalances

Submission of papers on related topics falling within the scope of the network, as described on its website http://www.ecb.europa.eu/home/html/researcher_mars.en.html, is also welcome. The selection committee will choose papers on the basis of research quality and fit to the above topics/policy relevance, to compose a program that mixes MaRs with external research. Selected papers will have a discussant and will be placed on the network website.

EXPENSES: Travel and accommodation expenses will be covered for academic speakers.

PAPER SUBMISSION PROCEDURE: Research papers should be sent electronically (MS Word or pdf versions only) at mars@ecb.europa.eu by July 15th 2012. The authors of selected papers will be informed by end August 2012.



Posted 6/12/12