Central banking after the great recession

Old theories in monetary policy are being challenged and macroprudential policy is ever more important. This two-session workshop addressed the place of central banks in the post-crisis economy.

Session 1: Macroprudential policy and its relationship with monetary policy: the complex European framework

Macroprudential policy has two main goals: to increase the resilience of the financial system and to tame the financial cycle with more targeted tools than monetary policy. These measure can be tailored to country-specific circumstances, which is especially important in a heterogeneous monetary union. However, macroprudential policies are new and still under construction, especially in advanced economies. Are macroprudential tools sufficient to ensure financial stability? Could the complex European set-up make their implementation less effective?

Session 2: After the crisis, the evolving role of central banks

Do we have to re-open the institutional design question we had thought we had solved establishing independent central bank moving interest rates in the pursuit of price stability? Do new monetary tools, a closer relationship with fiscal policy and the renewed financial stability mandate require a new central banking paradigm?

Event materials

Event Notes
Markus Brunnermeier – Presentation
Claudia Buch – Presentation
Charles Goodhart – Presentation
Andrzej Rzońca – Presentation