Monetary Operations: Tools and Techniques for Policy Implementation

Monetary Operations: Tools and Techniques for Policy Implementation

Monetary Operations: Tools and Techniques for Policy Implementation

September 28 - 29

At the beginning of 2020, normalisation represented the new goal. But does that still apply with recent Covid-19 developments? How have monetary operations responded to this pandemic? Normalisation and Covid-19 has pushed central banks into unknown territory and presents a number of unprecedented questions and challenges for monetary policy. These include:

What is the short and long term impact of the monetary policy response to Covid-19? What tools are needed for the new ‘normal’? What is the optimal size of central bank’s balance sheets? How should the normalisation process be sequenced?

Agenda

Participants will have access to pre-recorded presentations two weeks before the course

00:0000:00

Climate risk: impact and implications for monetary policy
Pre-recorded presentation

00:00 - 00:30

  • Climate change as the emerging source of local and systemic instability
  • Impact and implications for monetary policy strategy, conduct and implementation
  • Overview of new roles and responsibilities for central banks in the areas of green finance and ESG
  • Discussion: how are central banks’ tackling climate risk in the delegates’ home jurisdictions?
Ulrich Volz

Director of Centre for Sustainable Finance

SOAS University of London

The new toolkit for optimizing monetary policy operations
Pre-recorded presentation

00:00 - 00:30

  • Evolution of approaches for managing domestic liquidity and monetary policy operations
  • Frameworks for tackling challenges at both strategic and day-to-day level
  • Key features of the modern monetary operations toolkit
  • Case study: monetary operations framework at the European Central Bank
Francesco Papadia

former Director General for Market Operations

European Central Bank

Francesco Papadia is chair of Prime Collateralised Securities, chair of the Selection Panel of the Hellenic Financial Stability Fund, resident fellow of Bruegel and lectures at various Universities. Between June 1998 and May 2012 he was director general for Market Operations at the European Central Bank. Before that he held different positions at Research Department and Foreign Department of Banca d'Italia. Between 1980 and 1983 he was economic advisor at the Directorate General for Economic and Financial Affairs of the European Commission. From 1974 to 1979 he served as economist in the Research Department of Banca d'Italia. Francesco Papadia holds a degree in Law from the University of Rome. He did his postgraduate studies in Economics at Istao, Ancona and at the London Business School. He has published numerous articles and books.

China’s economy and monetary policy: global implications in focus
Pre-recorded presentation

00:00 - 00:30

  • Evolution of China’s economy and monetary policy
  • Implications for capital markets and the global financial system
  • Key risks and opportunities for monetary policy frameworks and strategies in advanced and emerging economies
  • Discussion: what is the impact of geopolitics on monetary policy?
Jin Zhongxia

Executive Director

International Monetary Fund

Digital currencies and monetary policy: roles and responsibilities for central banks
Pre-recorded presentation

00:00 - 00:30

  • Taxonomy of Central Bank Digital Currencies (CBDCs), stable coins and crypto assets
  • Impact and implications of CBDCs for markets and portfolios
  • Opportunities and risk of CBDCs for monetary policy implementation
  • Discussion: will Covid-19 speed the transition to digital currencies?
Louise Johnston

Policy Manager, Digital Currencies Team

Bank of England

Basel Accord: latest development and their impact on liquidity management
Pre-recorded presentation

00:00 - 00:30

Bozena Gulija

Former State Street Bank & Croatian National Bank

Bozena Gulija is a former vice president and regulatory manager (banking supervision & regulation) at State Street Bank. Bozena has over 15 years of experience in the financial sector covering different aspects of the challenges related to the finance industry, including banking supervision, prudential regulation, risk management and various jurisdictions and business models.

Equipped with a background in economics, finance/banking and international relations, she has worked for private organisations including State Street Bank, Nordea Bank, Privredna banka (Intesa Sanpaolo Group), as well as public institutions such as the European Court of Auditors, the Croatian National Bank, Institute for Development and International Relations and the Croatian Chamber of Economy.

Bozena holds a Master’s Degree in Economics & Finance from the University of Zagreb, Croatia. She also holds various postgraduate studies from Georgetown University (International Institute for Political and Economic Studies) and The London School of Economics and Political Science, LSE (Business, International Relations and the Political Economy).

Monetary policy implementation and the challenges posed by the financial crisis
Pre-recorded presentation

00:00 - 00:30

Jesper Berg

Director General, Danish Financial Supervisory Authority and former Head of Market Operations

National Bank of Denmark

Timings are subject to change as we evaluate geographic limitations of participants

11:0011:30

Course introduction
Opening remarks with the course chair

00:00 - 00:30

  • Introduction of the chairman
  • Overview of the training course
  • Discussion of the delegate expectations

11:3012:30

The future of unconventional monetary policy
Presentation followed by Q&A

08:00 - 09:00

  • Overview of unconventional monetary policy measures applied in response to the changes in economic and financial conditions
  • Examples of frameworks for assessing the effects of these measures
  • Applicability of unconventional measures in the era of monetary policy normalisation
  • Case study: Japanese experience of unconventional monetary policy and its wider implications
Shigenori Shiratsuka

Director General, Institute for Monetary and Economic Studies

Bank of Japan

Shigenori Shiratsuka is the director-general of the Institute for Monetary and Economic Studies at the Bank of Japan, a position he has held since 2016. Prior to this, he worked in various positions at the Bank, including deputy director-general of the Monetary Affairs Department, general manager of Kanazawa and Matsuyama Branches, and division head of the Economic and Financial Studies of the Institute for Monetary and Economic Studies, as well as head of the Financial Analysis and Research of the Financial Systems and Bank Examination Department. Mr. Shiratsuka has written numerous publications on monetary policy as well as macro prudential policy. He holds a B.A. and a Ph.D. in Economics from Keio University. 

12:3012:45

Break

12:00 - 12:15

12:4513:45

Collateral management: an assessment framework
Presentation followed by Q&A

13:00 - 14:00

  • Overview of key collateral management techniques and frameworks
  • Changes in regulation and their impact on collateral quality, availability and central bank eligibility
  • Implications for balance sheets of central banks and other market participants
  • Discussion: what can market players and authorities do about a shortage of high quality liquid assets?
Evangelos Tabakis

Head of Risk Management

Central Bank of the United Arab Emirates

Evangelos Tabakis is the head of Risk Management and Compliance in the Central Bank of the United Arab Emirates, responsible for financial and operational risk, business continuity, information security and compliance across the activities of the central bank.  Previously he had been at the European Central Bank (ECB) in Frankfurt for fourteen years, holding positions in Market Operations and Risk Management. Most of his work at the ECB was related to the operational, risk management and financial stability issues posed by large scale collateralized lending to banks. Prior to his central banking career, Mr. Tabakis held academic positions at Yale University, the University of Bayreuth in Germany and the Athens University of Economics and Business in Greece. He holds a first degree in Mathematics from the University of Athens and a Ph.D. in Applied Mathematics (Mathematical Statistics) from the Massachusetts Institute of Technology.

13:4514:00

Break

13:15 - 13:30

14:0015:00

International monetary policy spillovers and responses
Presentation followed by Q&A

07:00 - 08:00

  • Examples of monetary policy spillovers from advanced to emerging market economies
  • Overview of measures taken in emerging markets in response to these effects
  • Spillover implications of the Fed monetary policy normalisation
  • Discussion: how do monetary policy spillovers get tackled in the delegates’ home jurisdictions?

15:0015:00

End of day 1

00:00 - 00:01

Timings are subject to change as we evaluate geographic limitations of participants

11:0012:00

FinTech and monetary operations: a case study
Presentation followed by Q&A

00:00 - 01:00

Nick Fletcher

Product Manager, Financial & Risk

Thomson Reuters

12:0012:15

Break

12:00 - 12:15

12:1513:15

What (not) to say to markets, when and how?
Presentation followed by Q&A

00:00 - 01:00

  • The role of communication with markets in monetary policy design and implementation
  • Overview of key signals that market participants are looking for in policy announcements
  • Examples of frameworks and processes ensuring that central banks’ messages are consistent and context-sensitive
Niko Herrala

Head of Monetary Policy Implementation

Bank of Finland

13:1513:30

Break

13:15 - 13:30

13:3014:30

Monetary policy in 2021: leaning against or with the wind?
Pre-recorded presentation

00:00 - 00:30

  • Assessment of dilemmas, conflicts and trade-offs between monetary operations and the financial stability mandate
  • Implications for central banks’ independence and accountability
  • Overview of key factors and dynamics that will shape the framework for monetary policy operations in the years to come
  • Discussion: future of monetary policy in the delegates’ home jurisdictions
Francesco Papadia

former Director General for Market Operations

European Central Bank

Francesco Papadia is chair of Prime Collateralised Securities, chair of the Selection Panel of the Hellenic Financial Stability Fund, resident fellow of Bruegel and lectures at various Universities. Between June 1998 and May 2012 he was director general for Market Operations at the European Central Bank. Before that he held different positions at Research Department and Foreign Department of Banca d'Italia. Between 1980 and 1983 he was economic advisor at the Directorate General for Economic and Financial Affairs of the European Commission. From 1974 to 1979 he served as economist in the Research Department of Banca d'Italia. Francesco Papadia holds a degree in Law from the University of Rome. He did his postgraduate studies in Economics at Istao, Ancona and at the London Business School. He has published numerous articles and books.

14:3014:45

Break

12:00 - 12:15

14:4515:15

Delegate action points and course conclusion
Course conclusion

14:45 - 15:15

  • Summary of the training course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points

Participants will continue their learning post-event

00:0000:00

Post training survey and feedback

00:00 - 00:30

Course alumni group

00:00 - 00:30

CPE/CPD certificate

00:00 - 00:30

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Francesco Papadia

Former director general for market operations

European Central Bank

Francesco Papadia is chair of primary collateralised securities, chair of the selection panel of the Hellenic Financial Stability Fund, resident fellow of Bruegel and lectures at various universities. Between June 1998 and May 2012 he was director general for market operations at the European Central Bank. Before that he held different positions at Research Department and Foreign Department at the Bank of Italy. Between 1980 and 1983 he was economic advisor at the Directorate General for Economic and Financial Affairs of the European Commission. From 1974 to 1979 he served as economist in the Research Department of the Bank of Italy. He holds a degree in law from the University of Rome and did his postgraduate studies in economics at Istao, Ancona and at the London Business School. He has written numerous articles and books.

Learning outcomes

By the end of the training course, participants will have gained new knowledge and a more comprehensive understanding of:

  • Roles and responsibilities for central banks for digital currencies and monetary policy
  • The impact and implications of climate risk for monetary policy
  • Recent development and the wider imact of the Fed and monetary policy normalisation
  • The global implications of China’s economy performance and monetary policy
  • The future of unconventional monetary policy
  • Understanding of liquidity forecasting
  • Understanding of beyond Libor: implications for central banks and markets
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