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The role of financial market liquidity in periods of turbulence: theory, empirical evidence and implications for policy"

14-15 October 2010

Please note that this event is not open to media participants.

Eurotower, Conference Room CIV, 2nd floor Frankfurt am Main

Conference dates Thursday, 14 October 2010 and Friday, 15 October 2010
Conference venue European Central Bank
Eurotower
Kaisertrasse 29
60311 Frankfurt am Main
Germany
Conference Room CIV, 2nd floor
Tel.: +49 69 1344 0
Fax: +49 69 1344 6000
Email: info@ecb.europa.eu
Dinner venue Intercontinental Hotel
Wilhelm-Leuschner-Strasse 43
60329 Frankfurt am Main,Germany
Room Silhouette, 21st floor
Dress code: business attire
Conference language English
Programme The conference programme may be changed without notice.
Organisers: Diego Rodriguez Palenzuela
Capital Markets/Financial Structure Division
ECB Directorate Economics
Tel.: +49 69 1344 6480
Fax: +49 69 1344 8839
E-mail: diego.rodriguez@ecb.europa.eu

Cornelia Holthausen
Financial Research Divison
ECB Directorate General Research
Tel: +49 69 1344 6490
E-mail: cornelia.holthausen@ecb.europa.eu

Administrative support: Agnese Apine
Tel: +49 69 1344 5068
Fax: +49 69 1344 6514
E-mail: agnese.apine@ecb.europa.eu

Baiba Zile
Tel: +49 69 1344 6503
Fax: +49 69 1344 6514
E-mail: baiba.zile@ecb.europa.eu

ECB Directorate Communications
Publishing, Events and Protocol Division
Jutta Auth
Tel.: +49 69 1344 7417
Fax: +49 69 1344 5775
E-mail: EVP-Events@ecb.europa.eu
Internet www.ecb.europa.eu

Day 1 - 14 October

8:45 - 9:15 Registration
9:15 - 9:30 Welcome, Jean-Claude Trichet, President, European Central Bank
  Session I

Financial frictions, liquidity and asset prices


Chair: Ignazio Angeloni, European Central Bank

9.30 - 10.50 "Financially Constrained Arbitrage and Cross-Market Contagion"

Dennis Gromb (INSEAD and CEPR) and
Dimitri Vayanos (LSE, NBER and CEPR)

Discussants:
Ilan Kremer
Stanford Business School
Antonio Mele, London School of Economics

10.50 - 11.10 Coffee break
11.10 - 12.30 "Funding Liquidity Risk and the Cross-Section of Stock Returns"

Tobias Adrian,
Erkko Etula
and
Tyler Muir, Federal Reserve bank of New York.

Discussants:
Hans Dewachter, University of Leuven
Wolfgang Lemke, ECB

12.30 - 2.00 Lunch (foyer CIV)
Session 2

Liquidity, financial distress and economic complexity

Chair: Frank Smets, European Central Bank

2.00 - 3.20 "Overcoming Adverse Selection: How Public Intervention can Restore Market Functioning"

Jean Tirole, IDEI

Discussants:
Elena Carletti, European University Institute
Florian Heider, ECB

3.20 - 4.40 "Caught Between Scylla and Charybdis? Regulating Bank Leverage When There is Rent Seeking and Risk Shifting."

Viral Acharya, Hamid Mehran, Anjan Thakor

Discussants:
Paolo Angelini, Banca d’Italia
Diego Rodriguez Palenzuela, European Central Bank

4.40 - 5.00

Coffee break

5.00 - 6.20 "Fire Sales in a Model of Complexity"

Ricardo J. Caballero (MIT) and Alp Simsek

Discussants:
Katerina Smidkova, Česká Národní Banka
Fernando Vega, European University Institute

7.30

Dinner (by invitation)
Key note speech – Jürgen Stark, Member of the Executive Board, European Central Bank

Day 2 - 15 October

8.30 - 9.00 Registration
  Session 3

Money markets and financial market liquidity

Chair: Diego Rodríguez Palenzuela, European Central Bank

9.00 - 10.20 "Money and Liquidity in Financial Markets"

Kjell Nyborg (Swiss Banking Institute and CEPR) and
Per Östberg (Swiss Banking Institute, University of Zürich and (NHH)

Discussants:
Denis Beau, Banque de France
Ulrich Bindseil, ECB

10.20 - 11.40 "Endogenous maturity mismatch, maturity of open market operations and liquidity regulation"

Cornelia Holthausen and Jens Eisenschmidt, European Central Bank

Discussants:
Morten Bech, Federal Reserve Bank of New York
Falko Fecht, European Business School (Swiss National Bank)

11.40 - 12.00

Coffee break

12.00 - 1.20 "Bank Liquidity Creation, Monetary Policy, and Financial Crises"

Allen N. Berger (University of South Carolina, Wharton Financial Institutions Center and Tilburg University)
Christa H.S. Bouwman (Case Western Reserve University and Wharton Financial Institutions Center)

Discussants:
Ángel Gavilán González, Banco de España
Thilo Pausch, Bundesbank

1.30

Lunch (foyer CIV)