International Conference 2016 on "The transmission mechanism of new and traditional instruments of monetary and macroprudential policy "

13-14 October 2016 - Auditorium of the National Bank of Belgium in Brussels

The financial crisis and the ensuing economic crisis created new challenges for monetary policy and demonstrated the need for a macroprudential policy. Moreover, in the current environment of low inflation and a zero interest rate policy, the limits of conventional monetary policy instruments have been reached. Consequently, in the current economic context, new instruments have to be deployed for both monetary and macroprudential policy. So far, there has not been any extensive research into transmission channels and the effectiveness of these new instruments. A range of new research findings on the subject have been presented at this conference.

Introduction by Governor Jan Smets

Session 1: The transmission of macroprudential instruments
chaired by director Jean Hilgers

The relationship between monetary policy and financial stability
Giovanni Dell'Ariccia
Keynote presentation

The impact of sectoral macroprudential capital requirements on mortgage loan pricing: evidence from the Belgian risk weight add-on
Stijn Ferrari, Mara Pirovano, Pablo Rovira Kaltwasser
Working Paper 306presentation
Discussion by Christoph Basten

Bank capital (requirements) and credit supply: evidence from pillar 2 decisions
Olivier De Jonghe, Hans Dewachter, Steven Ongena
Working Paper 303 presentation
Discussion by Margherita Bottero

Session 2: The transmission of unconventional monetary policy
chaired by Vice-Governor Pierre Wunsch

Funding quantitative easing to target inflation
Ricardo Reis
Keynote presentationpaper

Forward guidance, quantitative easing, or both?
Ferre De Graeve, Konstantinos Theodoridis
Working Paper 305presentation
Discussion by Andrea Ferrero

The transmission mechanism of credit support policies in the euro area
Jef Boeckx, Maité de Sola Perea, Gert Peersman
Working Paper 302presentation
Discussion by Matteo Ciccarelli

The response of euro area sovereign spreads to the ECB unconventional monetary policies
Hans Dewachter, Leonardo Iania, Jean-Charles Wijnandts
Working Paper 309presentation
Discussion by Thomas Werner

Session 3: Interactions between monetary and macroprudential policy
chaired by director Marcia De Wachter

Assessing the role of interbank network structure in business and financial cycle analysis
Jean-Yves Gnabo, Nicolas K. Scholtes
Working Paper 307presentation
Discussion by Olivier Pierrard

The interdependence of monetary and macroprudential policy under the zero lower bound
Vivien Lewis, Stefania Villa
Working Paper 310presentation
Discussion by Carlos Thomas

The trade-off between monetary policy and bank stability
Martien Lamers, Frederik Mergaerts, Elien Meuleman, Rudi Vander Vennet
Working Paper 308presentation
Discussion by Jean-Stéphane Mésonnier

Monetary and macroprudential policy games in a Monetary Union
Richard Dennis, Pelin Ilbas
Working Paper 304presentation
Discussion by Olivier Loisel

Session 4: Policy implications
chaired by director Tim Hermans

Optimal dynamic capital requirements
Javier Suarez
Keynote presentation

Panel session
moderated by director Mathias Dewatripont
panellist: Jean-Pierre Landau, Francesco Mazzaferro, Paul Tucker