ECB conference on money markets

Purpose

The ECB’s annual conference on money markets brings together academics, market practitioners and central bankers to discuss the key developments in money markets, monetary policy implementation and central bank operational frameworks. Through a combination of research presentations, keynote speeches and insights from market participants, the workshop explores how efficient transmission of monetary policy can be ensured in the current money market environment.

Keynote speakers

• Philip Lane, Member of the Executive Board, European Central Bank
• Haoxiang Zhu, Gordon Y Billard Professor of Management and Finance, MIT Sloan School of Management

Topics

Money markets play a key role in the implementation and transmission of monetary policy. This has been demonstrated once again by the course of events since the start of the coronavirus (COVID-19) pandemic in early 2020. In recent years, money markets have evolved significantly in response to the changing environment. Central banks have resorted to non-standard monetary policy measures such as asset purchases, negative interest rates, (targeted) long-term liquidity-providing operations and expanded collateral frameworks. At the same time, regulatory action has paved the way for structural changes in money markets, such as a more prominent role for non-banks, an increase in secured lending and central clearing, and a reform of interest rate benchmarks. Looking ahead, the potential introduction of central bank digital currencies and policy initiatives related to the fight against climate change could have a significant bearing on the evolution of money markets and monetary policy implementation frameworks.

Researchers are invited to present their latest results and ideas in the broad areas of money markets, monetary policy implementation, and central bank operational frameworks. Topics of interest for submission include, but are not limited to:

• the effects of non-standard monetary policy measures on money markets
• the role of non-banks in the implementation and transmission of monetary policy (including access to central bank facilities)
• structural change in money markets (e.g. from unsecured to secured lending, central clearing, technological progress, supply of/demand for high-quality liquid assets as collateral, etc.)
• cross-border issues in money markets, including developments in the FX swap market and the role of global financial institutions
• money market fragmentation and its implications for monetary policy implementation
• tiering systems for remunerating excess liquidity holdings
• interest rate benchmark reform
• the future of central bank operational frameworks, including their role in the fight against climate change
• the impact of the coronavirus (COVID-19) pandemic on money markets
• central bank digital currencies and monetary policy implementation

Papers should be submitted in portable document format (PDF) to MMWorkshop@ecb.europa.eu by 30 June 2021. Submissions by female researchers are particularly encouraged. Authors whose papers are accepted will be notified by the end of July 2021. Submitting authors should also indicate whether they would be willing to discuss a paper.

The conference will start in the morning of Monday, 8 November 2021 and end at noon on Tuesday, 9 November 2021. There will be a dinner for in-person participants in the evening of the first day.

Expenses

Academic speakers and discussants will be reimbursed for any travel or accommodation costs incurred.

Conference organisers

• María Encío, Money Market and Liquidity Division
• Peter Hoffmann, Financial Research Division
• Danielle Kedan, Monetary Policy Strategy Division
• Sebastian Weber, Market Operations Analysis Division