Monetary Policy, Macroprudential Regulation and Inequality

Co-organized with the International Monetary Fund
Zurich, Switzerland
Call for Papers (PDF)

  • Inequality is at historically high levels in many advanced and developing economies. The drivers of this trend and its effects are widely debated. In this context, the interlinkages of monetary policies and macroprudential regulation with income and wealth distribution are also attracting growing attention.

    Against this background, the Council on Economic Policies (CEP) and the International Monetary Fund (IMF) are organizing a workshop on Monetary Policy, Macro-prudential Regulation and Inequality, on October 3-4, 2016 in Zurich, Switzerland. The event will bring together economists from academia, central banks, and research institutions.

    Papers presented in the workshop will be considered for an expedited review process for a Journal of International Money and Finance special issue to be published in 2017.

    Topics of interest
    Many observers suggest that unprecedented monetary easing and central banks’ unconventional actions following the Global Financial Crisis may have increased inequality. Others focus on the distributional impact of monetary policy through exchange rates and international capital flows. The effects on inequality of macroprudential regulation (e.g. how caps on loan-to-value ratios affect access to the housing market across different income groups) is also being analyzed. Studies also highlight the potential impact of inequality on credit market soundness and thus on the design of optimal macroprudential regulation.

    We are interested in the topics above and the questions listed below, but will also consider papers dealing with related issues not specifically mentioned. Studies on advanced and/or developing countries are welcome. Empirical and policy papers are particularly encouraged.

    – What are the effects of monetary policy and macroprudential regulation on income and wealth distribution?
    – What are the relevant transmission mechanisms for these effects? What role do inflation rates, exchange rates and international capital flows play in this context?
    – Does income and wealth distribution matter for the transmission of monetary policy and for the effectiveness of macroprudential regulation?
    – Which transmission channels are affected? Are there alternatives to current policies that can better account for these effects?

  • Monday, October 3, 2016
    Opening Remarks
    Pierre Monnin, Council on Economic Policies
    09.00-10.00The Effects of Monetary Policy Shocks on Inequality
    Davide Furceri, International Monetary Fund
    Prakash Loungani, International Monetary Fund
    Aleksandra Zdzienicka, International Monetary Fund (Slides)
    Discussant: Jan-Egbert Sturm, ETH Zurich
    10.00-11.00Monetary Policy and Inequality: Financial Channels
    Rory O'Farrell, OECD (Paper)
    Lukasz Rawdanowicz, OECD
    Discussant: Martin Cihak, International Monetary Fund
    11.30-12.30Conventional and Unconventional Monetary Policy vs. Households Income Distribution: an empirical analysis for the Euro Area
    Chiara Guerello, LUISS “Guido Carli” (Paper)
    Discussant: Davide Furceri, International Monetary Fund
    13.30-14.30A “Reverse Robin Hood”? The Distributional Implications of Non-Standard Monetary Policy for Italian Households
    Marco Casiraghi, Banca d’Italia
    Eugenio Gaiotti, Banca d’Italia
    Lisa Rodano, Banca d’Italia (Paper)
    Alessandro Secchi, Banca d’Italia
    Discussant: Gaston Giordana, Banque Centrale du Luxembourg
    14.30-15.30Distributional Consequences of Asset Price Inflation in the Euro Area
    Klaus Adam, University of Mannheim
    Panagiota Tzamourani, Deutsche Bundesbank (Paper)
    Discussant: Tobias Cwik, Swiss National Bank
    16.00-17.00Inequality and Aggregate Demand
    Adrien Auclert, Stanford University
    Matthew Rognlie, Massachusetts Institute of Technology
    Discussant: Romain Baeriswyl, Swiss National Bank
    18.00-21.15Lecture and Apéro Riche
    Global Finance, Debt and Sustainability
    Lord Adair Turner
    Tuesday, October 4, 2016
    09.00-10.00Macroprudential Policy and Income Inequality
    Jon Frost, De Nederlandsche Bank
    René van Stralen, De Nederlandsche Bank
    Discussant: Gregory Thwaites, Bank of England
    10.00-11.00The Role of Macroprudential Regulations on Household Wealth Inequality
    Jean-François Carpantier, University of Aix-Marseilles
    Javier Olivera, Luxembourg Institute of Socio-Economic Research (Paper)
    Philippe Van Kerm, Luxembourg Institute of Socio-Economic Research
    Discussant: Josef Schroth, Bank of Canada
    11.30-12.30Inequality and Financial Fragility
    Yuliyan Mitkov, Rutgers University (Paper)
    Discussant: Pierre Monnin, Council on Economic Policies
    12.30-13.00Speech by Liviu Voinea, Deputy Governor of the National Bank of Romania
    Should Central Banks Care About Inequality?
    14.00-15.00Borrower Heterogeneity Within the Mortgage-Lending Market and Macroprudential Policy
    Maria Teresa Punzi, Vienna University of Business and Economics (Paper)
    Katrin Rabitsch, Vienna University of Business and Economics
    Discussant: Gee Hee Hong, International Monetary Fund
    15.00-16.00The Nexus of Financial Inclusion and Financial Stability: A Study of Tradeoffs and Synergies
    Martin Cihak, International Monetary Fund
    Davide Mare, University of Edinburgh
    Martin Melecky, World Bank
    Discussant: Eva van Leemput, Federal Reserve Board
    16.00-17.00Concluding Remarks and Discussion
    Pierre Monnin, Council on Economic Policies

  • – Paola Boel, Sveriges Riksbank
    – Davide Furceri, International Monetary Fund
    – Kees Koedijk, Journal of International Money and Finance and Tilburg University
    – Pierre Monnin, Council on Economic Policies
    – Ugo Panizza, Graduate Institute of International and Development Studies
    – Yongseok Shin, Washington University in St. Louis and Federal Reserve Bank of St. Louis