Coordinating Macroprudential and Macroeconomic Policies: Issues Facing Europe in the Decade Ahead
Russell Kincaid, Academic Visitor, St Antony’s College, University of Oxford
Valerie Herzberg, Senior Member, St Antony’s College, University of Oxford; Member, Cabinet of Vice-President Jyrki Katainen, Jobs, Growth, Investment and Competitiveness, European Commission
Chair: Stephen Pickford, Senior Research Fellow, International Economics, Chatham House
Macroprudential policies are being developed to supplement microprudential instruments, causing coordination issues between macroprudential and macroeconomic policies, most notably monetary policy. With a new objective – financial stability – and a new instrument - macroprudential policy – the question of optimal assignment is critical, and institutional arrangements become important.
At this seminar, two papers will be presented. The papers argue that the optimal assignment of policies to objectives may be different in a post-crisis environment from that in normal times, and different under a fixed exchange rate regime, especially a currency union, from that in a floating exchange rate regime. In addition, they warn about inherent limitations in the effectiveness of macroprudential measures, seen in isolation and from a cyclical perspective. The authors make specific proposals to deal with these issues.
This event is in partnership with the programme on the Political Economy of Financial Markets (PEFM), St Antony’s College, University of Oxford.
Attendance at this event is by invitation only.
A light lunch will be served from 12:00.
The Chatham House Rule
To enable as open a debate as possible, this event will be held under the Chatham House Rule.