Monetary policy spillovers in a financially integrated world Joint Danmarks Nationalbank – BIS conference to mark the 200th anniversary of Danmarks Nationalbank, Copenhagen, 7-8 September 2018 Attendance is by invitation only. Programme not to be published until after the event. INTRODUCTION TO THE CONFERENCE Danmarks Nationalbank celebrates its 200-year anniversary in 2018. As part of the anniversary celebrations, Danmarks Nationalbank and the Bank for International Settlements are organising this high-level conference on "Monetary policy spillovers in a financially integrated world". The conference will provide a forum for global central bankers and leading academics to dis- The conference will conclude with a policy cuss key monetary policy issues of the day: panel with particular focus on the special chal- lenges facing central banks in small, open • What lessons were learnt about the main economies. forces that drove the global economy into the era of unconventional monetary policies The conference will be closed to media. There and unprecedented monetary policy spill- will be a separate "doorstep press/media overs? event" after the end of the conference. • What monetary policy and macroprudential challenges still face central banks in the cur- The keynote speakers and discussants have rent economic and political environment? been invited to have a written version of their What more should be done? interventions in the conference proceedings • How has our understanding of exchange which will be published after the event. The rate regimes evolved over time, especially proceedings will also include the programme in the light of trends in economic and finan- and a short summary of the discussion of the cial globalisation? Is the concept of the clas- topics on the agenda (Chatham House Rules – sical exchange rate “trinity” obsolete? no identification of the individual speaker or • What role should exchange rates play in participant). The proceedings will become monetary policy frameworks, including con- freely available at Danmarks Nationalbank's sideration of shortcomings in the interna- website. tional monetary system? Is exchange rate stability a precondition for lasting price and financial stability? 2 PROGRAMME 6 September 2018 19:00 – 21.30 Pre-conference dinner Venue: Väkst, Sankt Peders Stræde 34, DK-1453 Copenhagen K Dress code: Business casual 7 September 2018 12:00 – 12:30 Registration Venue: The Hans Christian Andersen Castle in Tivoli, H.C. Andersens Boulevard 20-22, DK-1553 Copenhagen V 12:30 – 13:30 Buffet lunch Venue: Gemyse in Tivoli 14:00 – 18:00 Conference – Day 1 Venue: The Hans Christian Andersen Castle in Tivoli Dress code: Business attire 14:00 – 14:30 Opening remarks Lars Rohde , Danmarks Nationalbank Agustín Carstens , Bank for International Settlements 14:30 – 15:50 Session 1 From the Great Moderation to the Great Recession and beyond – how did we get here and what lessons have we learned? Chair: Claudia M. Buch , Deutsche Bundesbank Keynote (20 min.): Kenneth Rogoff , Harvard University Discussants (40 min.): Frank Smets, European Central Bank Donald Kohn , Brookings Institution General discussion (20 min.) 15:50 – 16:30 Coffee break 16:30 – 18:00 Session 2 Coping with the current challenges for central banks Chair : Peter Praet , European Central Bank Keynote (20 min.): Axel A. Weber , UBS Discussants (40 min.): Mohamed A. El-Erian , Allianz Charles Bean , London School of Economics General discussion (30 min.) 19:30 – 22:30 Reception and dinner With partners Venue: Danmarks Nationalbank, Havnegade 5, DK-1093 Copenhagen K Dress code: Business attire 3 Dinner speech: Exchange rate regimes in a globalised economy: challenges and prospects Chair: Niels Thygesen , University of Copenhagen Dinner speaker (15 min.): Stanley Fischer , MIT Questions (5 min.) 8 September 2018 8:30 – 9:00 Registration and coffee Venue: The Hans Christian Andersen castle in Tivoli 9:00 – 12:30 Conference – Day 2 Venue: The Hans Christian Andersen castle in Tivoli Dress code: Business attire 9:00 – 10:20 Session 3 Life in the periphery Chair : Øystein Olsen , Norges Bank Keynote (20 min.): Stephen S. Poloz , Bank of Canada Discussants (40 min.): Veerathai Santiprabhob , Bank of Thailand Hélène Rey , London Business School General discussion (20 min.) 10:20 – 11:00 Coffee break 11:00 – 12:15 Panel discussion The future of central banking from a small open-economy perspective Chair: Lars Rohde , Danmarks Nationalbank Panelists: Mar Gudmundsson , Central Bank of Iceland Philip Lowe , Reserve Bank of Australia Stefan Ingves , Sveriges Riksbank Thomas Jordan , Swiss National Bank Karnit Flug , Bank of Israel Format: 5-10 min. introduction by each panelist followed by panel discussion and general discussion 12:15 – 12:30 Closing remarks Lars Rohde , Danmarks Nationalbank 12:45 – 13:15 Doorstep press/media event 13:15 – 14:45 Lunch, with partners Venue: Groeften in Tivoli 14:45 – 17:00 Social event With partners (Canal tour. Dress code: casual dress and practical shoes) 4 SPEAKERS Lars Rohde Danmarks Nationalbank Lars Rohde took office as Governor by Royal Appointment and Chairman of the Board of Governors of Danmarks Na- tionalbank in 2013. Lars Rohde has an MSc in Economics from Aarhus University. He has served as Chief Executive Officer of The Danish Labour Market Supplementary Pension Scheme, ATP, from 1998 to 2013. ATP is one of Europe's largest pension providers. The ATP Group is responsible for the management of assets of more than kr. 748 billion. Lars Rohde was a member of the Executive Board of the mortgage bank Realkredit Danmark from 1992 to 1997 and Deputy Chief Executive Officer from 1997 to 1998. Among other things Lars Rohde has also been a board member of Copenhagen Stock Exchange and part-time lecturer at Copenhagen Business School. Agustín Carstens Bank for International Settlements Agustín Carstens became General Manager of the BIS on 1 December 2017. Mr Carstens was Governor of the Bank of Mexico from 2010 to 2017. A member of the BIS Board from 2011 to 2017, he was chair of the Global Economy Meeting and the Economic Consultative Council from 2013 until 2017. He also chaired the International Monetary and Financial Committee, the IMF's policy advisory committee from 2015 to 2017. Mr Carstens began his career in 1980 at the Bank of Mexico. From 1999 to 2000, he was Executive Director at the IMF. He later served as Mexico's deputy finance minister (2000-03) and as Deputy Managing Director at the IMF (2003-06). He was Mexico's finance minister from 2006 to 2009. Mr Carstens has been a member of the Financial Stability Board since 2010 and is a member of the Group of Thirty. Mr Car- stens holds an MA and a PhD in economics from the University of Chicago. Claudia M. Buch Deutsche Bundesbank Professor Claudia M Buch is the Vice-President of the Deutsche Bundesbank. She is responsible for Financial Stability, Statistics and Internal Audit. Professor Buch is the accompanying person of the President of the Bundesbank on the ECB Governing Council and a member of the German Financial Stability Committee (FSC). Prior to joining the Bundesbank in May 2014, she was the President of the Institute for Economic Research (IWH) in Halle (2013-2014), Professor of Economics at the Otto von Guericke University Magdeburg (2013-2014), and Professor of Economics for “International Finance and Macroeconomics” at the University of Tübingen (2004-2013). From 2012 to 2014, she was a member of the German Council of Economic Experts. She was Scientific Director at the Institute for Applied Economic Research (IAW) in Tübingen (2005- 2013), and worked at the Institute for World Economics in Kiel (IfW) from 1992 until 2013. She habilitated at the University of Kiel (2002) after receiving her doctorate there in 1996. Between 1985 and 1991, she studied Economics at the University of Bonn and she graduated from the University of Wisconsin (Eau Claire) with a Master of Business Administration degree in 1988. Her fields of specialisation are financial stability, international banking, international finance and macroeconomics, and financial integration. Kenneth Rogoff Harvard University Kenneth Rogoff is Thomas D. Cabot Professor at Harvard University. From 2001–2003, Rogoff served as Chief Economist at the International Monetary Fund. His widely-cited 2009 book with Carmen Reinhart, This Time Is Different: Eight Centuries of Financial Folly, shows the remarkable quantitative similarities across time and countries in the run-up and the aftermath of severe financial crises. Rogoff is also known for his seminal work on exchange rates and on central bank independence. Together with Maurice Obstfeld, he is co-author of Foundations of International Macroeconomics, a treatise that has also become a widely-used graduate text in the field worldwide. Rogoff’s 2016 book The Curse of Cash looks at the past, pre- sent and future of currency from standardized coinage to crypto-currencies. The book argues that although much of mod- ern macroeconomics abstracts from the nature of currency, it is in fact at the heart of some of the most fundamental prob- lems in monetary policy and public finance. His monthly syndicated column on global economic issues is published in over 50 countries. Rogoff is an elected member of the National Academy of Sciences, the American Academy of Arts and Sci- ences, and the Group of Thirty, and he is a senior fellow at the Council on Foreign Relations. Rogoff is among the top ten on RePEc’s ranking of economists by scholarly citations. He is also an international grandmaster of chess. Frank Smets European Central Bank Frank Smets is Director General Economics at the European Central Bank since February 2017. Previously he was Adviser to the President of the European Central Bank since December 2013 and Director General of the Directorate General Re- search from September 2008. He is professor of economics at UGent and an honorary professor in the Duisenberg chair at the Faculty of Economics and Business of the University of Groningen.