On June 18-19, the Banco de España hosted the conference "Debt and Credit, Growth and Crises”, jointly organized with the World Bank. The Conference brought together academics and policy makers to discuss the links between credit and debt accumulation, and growth patterns and crisis. It focused on the interactions between leverage through the cycle and financial crises and recovery. Special consideration was given to the analysis of the challenges faced by policy makers, as well as the international dimensions of the crisis and the design of effective macro prudential policies. In particular, the topics of the conference included:
- Determinants of credit behavior and credit allocation
- Financial crises and excess debt and credit
- Leverage and sovereign risk
- Credit booms and crunches. Macroeconomic implications and international aspects
- The role of policies: monetary, fiscal, financial, macro prudential
The conference featured 10 papers, a policy panel, and a keynote speech by Professor Ricardo Caballero (MIT).
Information
18 June 2012 - 19 June 2012
Madrid
Speakers
18 June
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- 09:15h - 09:30h
- Opening Remarks: Luis M. Linde (Governor, Banco de España)
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- 09:30h - 11:00h
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Session 1: Leverage over the business cycle
Chair: Pilar L’Hotellerie-Fallois (Banco de España)
Óscar Jordá(UC Davis), Moritz Schularick (University of Berlin) and Alan M. Taylor (University of Virginia) “When credit bites back: leverage, business cycles and crises”
(616 KB)Discussant: Lola Gadea
(871 KB) (Universidad de Zaragoza)Galo Nuño (ECB) and Carlos Thomas (Banco de España) “Bank leverage cycles”
(583 KB)Discussant: Wolf Wagner (Tilburg University)
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- 11:20h - 12:50h
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Session 2: Leverage and sovereign risk
Chair: Tito Cordella (World Bank)
Philippe Martin(Science Po, Paris) and Thomas Philippon (New York University) “Household leverage and sovereign risk”
Discussant: Juan Francisco Jimeno
(1 MB)(Banco de España)Nicola Gennaioli (CREI Barcelona), Andrei Shleifer (Harvard University) and Robert Vishny (University of Chicago) “A model of shadow banking”
(639 KB)Discussant: Óscar Arce
(584 KB)(CNMV, Madrid)
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- 15:00h - 16:30h
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Session 3: Bubbles and financial inefficiencies
Chair: Rafael Doménech (BBVA)
Jaume Ventura and Alberto Martin (CREI, Barcelona) “Asset prices and economic activity”
(182 KB)Discussant: Zeno Enders (Heidelberg University)
Maya Eden (World Bank) "Excessive Financial Intermediation in a Model with Endogenous Liquidity"
(445 KB)Discussant: Fernando Broner
(43 KB)(CREI, Barcelona)
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- 17:00h - 18:15h
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Keynote Speech
Chair: tbc (Banco de España)
Speaker: Ricardo Caballero (MIT): “On the Shortage of Systemic Risk Insurance
(1 MB)”
19 June
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- 09:00h - 10:30h
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Session 4: International portfolio flows
Chair: Javier Vallés (Banco de España)
Sergio Schmukler (World Bank) and Claudio Raddatz (Banco Central de Chile) “On the International Transmission of Shocks: Evidence from Mutual Funds Portfolios”
(3 MB)Discussant: Neeltje van Horen
(861 KB) (De Nederlandsche Bank)Marcel Fratzscher, Marco Lo Duca and Roland Straub (ECB) “Quantitative easing, portfolio choice and international capital flows”
(350 KB)Discussant: Eduardo Fernández Arias
(181 KB)(Banco Interamericano de Desarrollo)
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- 10:45h - 12:15h
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Session 5: Macroprudential policy
Chair: Alberto Soler (Ministerio de Economía y Competitividad)
Carlos Vegh (University of Maryland), Pablo Federico (University of Maryland) and Guillermo Vuletin (Colby College), “Reserve requirements as a macroeconomic tool”
(107 KB)Discussant: Enrique Alberola
(994 KB) (Banco de España)Javier Suárez (CEMFI) and David Martínez-Miera (Carlos III, Madrid) “A macroeconomic model of endogenous systemic risk-taking”
(435 KB)Discussant: Frederic Malherbe
(542 KB) (London Business School)
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- 12:30h - 14:00h
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Policy panel
Chair: Augusto de la Torre (World Bank)
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William White (1 MB)(OECD)
- Willem Buiter (Citigroup)
- Jordi Gual (La Caixa)
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William White
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- 14:00h - 14:10h
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Closing Remarks
Pilar L’Hotellerie-Fallois (Banco de España) and Augusto de la Torre (World Bank)