Current Policy Challenges Facing Emerging Markets
July 24-25, 2019
The Central Bank of Chile, the International Monetary Fund and the IMF Economic Review organized a joint conference on the “Current Policy Challenges Facing Emerging Markets". Rising trade barriers, weak commodity prices, the ongoing monetary policy normalization in advanced economies, and the increased volatility of world capital markets create a challenging global environment for emerging markets. These challenges are further complicated by domestic vulnerabilities in the public sector, financial intermediaries and the private sector. Against this background, the conference featured an outstanding set of academic and policy sessions on the key policy challenges facing emerging market economies. The event was hosted by the Central Bank of Chile and will take place in Santiago, Chile on July 24-25, 2019.
Day 1, Wednesday, July 24, 2019 |
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8:00–8:45 a.m. |
Registration |
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8:50–9:00 a.m. |
Opening Remarks by Gita Gopinath (Economic Counsellor and Director, Research Department, IMF) |
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9:00–10:30 a.m. |
Policy Panel Moderator: Gita Gopinath (Economic Counsellor and Director, Research Department, IMF) Guillermo Calvo (Columbia University) Kristin Forbes (MIT Sloan School of Management) Andrea Tokman (Quiñenco S.A.) Alejandro Werner (IMF) |
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10:30–10:45 a.m. |
*** Coffee Break *** |
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10:45 a.m.–12:45 p.m. |
Session 1: Monetary Policy Chair: Klaus Schmidt-Hebbel (Universidad del Desarrollo)
Optimal Monetary Policy under Dollar Pricing Authors: Konstantin Egorov (New Economic School) and Dmitry Mukhin (Yale University) Discussant: Ricardo Reis (London School of Economics) *** Interest Rate Uncertainty as a Policy Tool Authors: Fabio Ghironi (University of Washington) and Galip Kemal Ozhan (Bank of Canada) Discussant: Javier García-Cicco (Central Bank of Argentina) *** Is Inflation Domestic or Global? Evidence from Emerging Markets Authors: Rudolfs Bems (IMF), Francesca Caselli (IMF), Francesco Grigoli (IMF), and Bertrand Gruss (IMF) Discussant: Petra Geraats (University of Cambridge) |
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12:45–2:00 p.m. |
*** Lunch Break *** |
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2:00–3:30 p.m. |
Session 2: Global Finance and Emerging Markets Chair: José de Gregorio (University of Chile)
Authors: Gonzalo Asis (University of North Carolina at Chapel Hill), Anusha Chari (University of North Carolina at Chapel Hill), Adam Haas (University of North Carolina at Chapel Hill) Discussant: Stephen Cecchetti (Brandeis International Business School) *** China’s Impact on Global Financial Markets Author: Isha Agarwal (University of British Columbia), Grace Weishi Gu (University of California, Santa Cruz) and Eswar Prasad (Cornell University) Discussant: Gian Maria Milesi-Ferretti (IMF) |
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3:30–3:45 p.m. |
*** Coffee Break *** |
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3:45–5:15 p.m. |
Session 3: Trade Chair: Vittorio Corbo (Private Consultant)
Emerging Markets and the New Geography of Trade: The Effects of Rising Trade Barriers Authors: Ricardo Reyes-Heroles (Federal Reserve Board), Sharon Traiberman (New York University) and Eva van Leemput (Federal Reserve Board) Discussant: Sebastian Claro (Pontifical Catholic University of Chile) *** The Price of Capital Goods: A Driver of Investment Under Threat Authors: Weicheng Lian (IMF), Natalija Novta (IMF), Evgenia Pugacheva (IMF), Yannick Timmer (IMF) and Petia Topalova (IMF) Discussant: Pamela Medina (University of Toronto Scarborough and Rotman School of Management) |
| 5:30 p.m. | Cocktail Reception - Veranda Room, Ritz-Carlton Hotel |
Day 2, Thursday, July 25, 2019 |
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10:30–10:45 a.m. |
Registration and Coffee |
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10:45 a.m.–12:45 p.m. |
Session 4: Capital Flows Chair: Enrique Mendoza (University of Pennsylvania) The Impact of Industrialized Countries' Monetary Policy on Emerging Economies Authors: Vincenzo Quadrini (USC Marshall School of Business) Discussant: David Kohn (Pontifical Catholic University of Chile) *** Capital Flows at Risk Authors: Gaston Gelos (IMF), Lucyna Górnicka (IMF), Robin Koepke (IMF), Ratna Sahay (IMF) and Silvia Sgherri (IMF) Discussant: Luis Felipe Céspedes (Universidad Adolfo Ibáñez) *** Search for Yield in Large International Corporate Bonds: Investor Behavior and Firm Responses Authors: Charles W. Calomiris (Columbia Business School), Mauricio Larrain (Pontifical Catholic University of Chile and Comisión para el Mercado Financiero, CMF), Sergio L. Schmukler (World Bank) and Tomas Williams (George Washington University) Discussant: Giovanni Dell’Ariccia (IMF) |
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12:45–2:00 p.m. |
*** Lunch Break *** |
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2:00–3:30 p.m. |
Session 5: Monetary Policy and Foreign Exchange Intervention Chair: Pablo Garcia (Central Bank of Chile)
The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma Authors: Paolo Cavallino (Bank for International Settlements) and Damiano Sandri (IMF) Discussant: Sofia Bauducco (Central Bank of Chile) *** Emerging Markets Exchange Rate Policies: Stabilizing or Manipulation? Author: Kathryn M.E. Dominguez (University of Michigan) Discussant: Eduardo Levy Yeyati (Universidad Torcuato Di Tella) |
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3:30–3:45 p.m. |
*** Coffee Break *** |
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3:45–5:15 p.m. |
Session 6: Financial Intermediation Chair: Andrea Repetto (Adolfo Ibáñez University) Relationship Networks in Banking Around a Sovereign Default and Currency Crisis Authors: Pablo D’Erasmo (Federal Reserve Bank of Philadelphia), Hernán Moscoso Boedo (University of Cincinnati), María Pía Olivero (Drexel University) and Máximo Sangiacomo (Central Bank of Argentina) Discussant: Carlos Urrutia (Instituto Tecnólogico Autónomo de México) *** From Carry Trades to Trade Credit: Financial Intermediation by Non-Financial Corporations Authors: Bryan Hardy (Bank for International Settlements) and Felipe Saffie (University of Maryland) Discussant: Victoria Nuguer (Inter-American Development Bank) |