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First Banco de España Annual Research Conference

31 August – 1 September 2017
Banco de España, Madrid


On August 31 and September 1 2017, Banco de España will host its First Annual Research Conference in its Madrid headquarters.

In much of the industrialized world, including the euro area, the macroeconomic landscape is characterized by sluggish growth, inflation persistently below target, low interest rates (including short-term nominal rates close to their effective lower bounds), and increasing risks to financial stability. Against this background, economic policy-makers, including fiscal, monetary and macroprudential authorities, face the formidable challenge of promoting a faster economic recovery and the return of inflation to its target level, while ensuring financial stability. The aim of the conference is to bring together world leading scholars and policy-makers in order to discuss the causes of these macroeconomic developments and the policy measures to address them. Tobias Adrian, Ricardo Caballero, Gauti Eggertsson, Emmanuel Farhi, Jesús Fernández-Villaverde, Jordi Galí, Nobuhiro Kiyotaki, Morten Ravn, Tano Santos and Frank Smets have already confirmed their participation.

More generally, our Annual Research Conference is aimed at becoming Banco de España’s flagship research conference, and at reaffirming Banco de España’s commitment to research as an indispensable tool for improving economic policy-making.

Attendance: By invitation only.

More information


31 August 2017
Welcome Remarks
Luis M. Linde, Governor of Banco de España
Session I
Chair: Pablo Hernández de Cos (Banco de España)

Are negative nominal interest rates expansionary?
Gauti Eggertsson (Brown University)
Ragnar E. Juelsrud (BI Norwegian Business School)
Ella Getz Wold (Brown University)
Discussant: Dominik Thaler
(Banco de España)

Macroeconomic Fluctuations with HANK & SAM: an Analytical Approach
Morten Ravn (University College London, Centre for Macronomics and Centre for Economic Policy Research)
Vincent Sterk (University College London, Centre for Macronomics and Centre for Economic Policy Research)
Discussant: Kurt Mitman (IIES, Stockholm University)

Session II
Chair: Ángel Estrada (Banco de España)

Monetary Policy and Bubbles in a New Keynesian Model with Overlapping Generations
Jordi Galí (CREI, UPF, Barcelona GSE)
: Oscar Arce (Banco de España)

Session III
Chair: Carlos Thomas (Banco de España)

Monetary Policy, Bounded Rationality, and Incomplete Markets
Emmanuel Farhi (Harvard University)
Iván Werning (Massachusetts Institute of Technology)
Discussant: Benoît Mojon (Banque de France)

Habits and Leverage
Tano Santos (Columbia University)
Pietro Veronesi (University of Chicago)
Discussant: David Martínez Miera (Universidad Carlos III)

Session IV
Chair: Marco del Negro (Federal Reserve Bank of New York)

Financial Vulnerability and Monetary Policy
Tobias Adrian (International Monetary Fund)
Fernando Duarte (Federal Reserve Bank of New York)
Discussant: Peter Karadi (European Central Bank)

1 September 2017
Session V
Chair: José Manuel Campa (Banco Santander and IESE Business School)

Political Distribution Risk and Business Cycles
Thorsten Drautzburg (Federal Reserve Bank of Philadelphia)
Jesús Fernández-Villaverde (University of Pennsylvania)
Pablo Guerrón-Quintana (Boston College and ESPOL)
Discussant: Claudio Michelacci (Einaudi Institute for Economics and Finance)

Monetary Easing, Investment and Financial Instability
Viral Acharya (Reseve Bank of India and New York University)
Guillaume Plantin (Sciences Po)
Discussant: Rafael Repullo (CEMFI)

Policy Panel
Challenges for monetary policy in the current low inflation environment

Chair: Oscar Arce (Banco de España)

Viral Acharya (Reseve Bank of India and New York University)
Tobias Adrian (International Monetary Fund)

Frank Smets (European Central Bank)

Session VI
Chair: Javier Vallés (Banco de España)

A Risk-centric Model of Demand Recessions and Macroprudential Policy

Ricardo Caballero (Massachusetts Institute of Technology and NBER)
Alp Simsek (Massachusetts Institute of Technology and NBER)
Discussant: Jaume Ventura (CREI, UPF & Barcelona GSE)

Intangibles, Inequality and Stagnation
Nobuhiro Kiyotaki (Princeton University and LSE)
Shengxing Zhang (Princeton University and LSE)
Discussant: Andrea Caggese (CREI, UPF & Barcelona GSE)