2nd International Capital Flows and Financial Policies Workshop

25-26 October 2021 Paris, France

2nd Joint Bank of England-Banque de France–IMF–OECD-Banca d'Italia Workshop on International Capital Flows and Financial Policies

The risks and benefits of cross-border capital flows, and their impact on domestic economies, have been the subject of extensive policy and academic debate. Capital flow dynamics during the pandemic have once again highlighted the policy challenges arising from global financial market integration. The spread of the COVID-19 virus was associated with sharp movements in capital flows. Such volatility was amplified by a marked tightening in financial conditions, including strains in US dollar funding markets. Understanding these episodes of market turmoil and monitoring recent trends in international capital flows, such as the growing importance of more volatile flows from non-bank financial intermediaries, is key for appropriate policy responses.

The workshop brought together academics and policy makers to deepen our understanding of global capital flows. Banca d’Italia joined the organising committee in 2021 as part of its activities under the Italian G20 Presidency.

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Call for papers - June 2021

25 October 2021

14:30	Opening remarks Sylvie Goulard, Deputy Governor, Banque de France
14:40	Session 1: Distributional Effects and Drivers of Capital Flows Chair: Valerio Nispi Landi, Banca d'Italia
14:40	“Beware the Side Effects: Capital Controls Cause Misallocation and Reduce Welfare” Eugenia Andreasen (University of Chile), Sofía Bauducco (Central Bank of Chile), Evangelina Dardati (Centro de Estudios Públicos) and Enrique G. Mendoza (University of Pennsylvania and NBER)
15:05	Discussion: Fadi Hassan (Banca d’Italia, CEP and CEPR)
15:15	Q&A
15:20	“Why Does Capital Flow from Equal to Unequal Countries?” Sergio de Ferra (University of Oxford and CEPR), Federica Romei (University of Oxford and CEPR) and Kurt Mitman (Stockholm University and CEPR)
15:45	Discussion: Anusha Chari (University of North Carolina at Chapel Hill, NBER and CEPR)
15:55	Q&A
16:00	Coffee break
16:15	Policy Panel: The Changing Landscape of Capital Flows. New Patterns, Actors and Regulatory Aspects
16:15	Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department, IMF Claudia M. Buch, Vice-President, Deutsche Bundesbank Sir Jon Cunliffe, Deputy Governor for Financial Stability, Bank of England Luigi Federico Signorini, Deputy Governor, Banca d’Italia Moderator: Mathilde Mesnard, Acting Director, Directorate for Financial and Enterprise Affairs, OECD
17:30	End of first day of the meeting

26 October 2021

14:30	Session : Spillovers through Global Financial Cylces and Networks Chair: Martin Kaufman, IMF
14:30	“Leaning against the Global Financial Cycle” Andrea Ferrero (Oxford University and CEPR), Maurizio Michael Habib (ECB), Livio Stracca (ECB) and Fabrizio Venditti (Banca d’Italia)
14:55	Discussant: Deniz Igan (IMF)
15:05	Q&A
15:10	“Risk Sharing and Amplification in the Global Financial Network” Leslie Sheng Shen (Federal Reserve Board) and Tony Zhang (Federal Reserve Board)
15:35	Discussion: Iñaki Aldasoro (BIS)
15:45	Q&A
15:50	Coffee break
16:05	Session 3: Policies for Capital Flow Management and Covid-19 Chair: Pierre-François Weber, Banque de France
16:05	“Asset Purchases as a Remedy to the Original Sin Redux ” Yasin Mimir (Norges Bank) and Enes Sunel (OECD)
16:30	Discussion: Alessandro Rebucci (Johns Hopkins University, CEPR and NBER)
16:40	Q&A
16:45	“Capital Markets, COVID-19 and Policy Measures” Martina Hengge (IMF) and Khalid ElFayoumi (IMF)
17:10	Discussion: Stefan Goldbach (Deutsche Bundesbank)
17:20	Q&A
17:25	End of second day of the meeting