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, 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 by July 15th 2012. The authors of selected papers will be informed by end August 2012.

Posted 6/10/12