Monetary Policy Implementation: Lessons from the past and challenges ahead
Frankfurt am Main 20-21 January 2005
Workshop venue:
Eurotheum, Neue Mainzer Strasse 66-68, D-60311 Frankfurt am Main, Room CP11
Organisers:
Doris Decker (doris.decker@ecb.int)
Cornelia Holthausen (cornelia.holthausen@ecb.int)
Natacha Valla (natacha.valla@ecb.int)
Administration:
Sinead Lennon (sinead.lennon@ecb.int)
Introduction
The European Central Bank is organising a workshop on "Monetary policy implementation in the euro area: lessons from the past and challenges ahead". Over the past five years, substantial experience with money market operations by the Eurosystem has been gained. Moreover, from March 2004, further important changes to the Eurosystem's framework for monetary policy implementation have come into effect.
In light of these changes, and given the substantial progress that has been made over the past years in understanding the mechanisms of monetary policy operations, the ECB would like to provide a forum for discussion for central bankers, market participants, and academics interested in the field.
The aim of this workshop is to review, analyse and evaluate the experience with monetary policy operations up to now, and to further sharpen the understanding of central bank operations and their interaction with money markets, including empirical, institutional and theoretical issues.
Programme:
| 09:00 - 09:30 | Registration and coffee |
| 09:30 - 09:45 | Welcome and introductory speech by Professor O. Issing, Member of the Executive Board (ECB), en |
| 09:45 - 12:45 | Session I: Insights from developments in major central banks Chair: P. Mercier (ECB) D. Decker (ECB), N. Valla (ECB): Monetary policy implementation in the euro area and the experience with the new framework pdf 198 kB, en E. Maeda (Bank of Japan): Open market operations under the framework of quantitative easing policy pdf 400 kB, en S. Macgorain (Bank of England): Achieving overnight rate stability in a reserves averaging framework |
| 11:00 - 11:15 | Coffee |
| S. Hilton (Federal Reserve Bank of New York): Retrospective on federal funds rate behavior: 1987-2004 pdf 76 kB, en Discussion: R. Häuser (Euribor-ACI money market and liquidity working group), D. Blenck (ECB), S. Hilton (Federal Reserve Bank of New York), E. Maeda (Bank of Japan) and S. Macgorain (Bank of England) |
|
| 12:45 - 14:00 | Lunch |
| 14:00 - 15:30 | Session II: Central bank auctions and the design of the operational framework Chair: P. Moutot (ECB) Session II.1: Bidding behaviour and the design of the operational framework A. Scalia, G. Bruno and M. Ordine (Banca d’Italia): Banks’ participation in the Eurosystem auctions and money market integration pdf 520 kB, en Discussant: T. Välimäki (Bank of Finland) F. Lecinq (Banque de France): The impact of the operational framework reform on the link between bidding behaviour and market conditions pdf 616 kB, en Discussant: N. Cassola (ECB) |
| 15:30 - 16:00 | Coffee |
| 16:00 - 18:00 | Session II.2: The role of standing facilities C. Ewerhart et al. (University of Zurich): Sporadic manipulation in money markets with central bank standing facilities. ECB Working Paper No. 399, pdf 970 kB, en Discussant: M. Ellison (Warwick University) J. Moore (Federal Reserve Bank of Atlanta): Adjustment and primary credit borrowing at the discount window Discussant: A. Prati (International Monetary Fund) P. Angelini and V. Vacca (Banca d’Italia): What determines banks’ sensitivity to money market interest rates? Discussant: C. Holthausen (ECB) pdf 243 kB, en |
| 18:00 | Conference adjourns |
| 19:00 | Dinner in restaurant Opéra at the Alte Oper - Dinner Address by Mrs Tumpel-Gugerell, Member of the Executive Board (ECB), en |
| 08:45 - 09:00 | Coffee |
| 09:00 - 11:30 | Session III: Money market infrastructure Chair: P. Hartmann (ECB) S. Sundaresan and Z. Wang (Columbia University): Public provision of private liquidity: evidence from the millenium date change pdf 723 kB, en Discussant: U. Bindseil (ECB) U. Neyer (University of Halle-Wittenberg) and J. Wiemers (Halle Institute for Economic Research): The influence of a heterogeneous banking sector on the interbank market rate in the euro area pdf 343 kB, en Discussant: C. Upper (Deutsche Bundesbank) |
| 10:30 - 10:40 | Coffee |
| V. Brousseau and A. Manzanares (ECB): A look at intraday frictions in the euro area overnight deposit market Discussant: H. Pijl (De Nederlandsche Bank) F. Würtz and E. Krylova (ECB): The liquidity effect in the euro area pdf 359 kB, en, tables & charts: pdf 839 kB, en, annexes: pdf 364 kB, en Discussant: D. Nautz (Johann Wolfgang Universität, Frankfurt) |
|
| 11:40 - 12:00 | Coffee & light snack |
| 12:00 - 13:30 | Panel Discussion: Central banks and markets Chair: F. Papadia (ECB) Panelists: M. Goodfriend (Federal Reserve Bank of Richmond), D. Kos (Federal Reserve Bank of New York), F. Papadia (ECB), T. Roland (HSBC CCF) and M. Shirakawa (Bank of Japan) |
| 13:30 | Conference ends |