Publications and Research

Conference Announcement and Call for Papers

Developing a Framework to Assess Financial Stability
(Bank of Canada Annual Conference)

7-8 November 2007
Bank of Canada, Ottawa

There is a growing consensus among economists concerning the main elements of a good monetary policy framework. For instance, most economists agree that monetary policy should focus primarily on price stability and that price rigidities contribute importantly to the transmission mechanism of monetary policy. While there is no such consensus concerning the appropriate model for the role of central banks and the tools they should use to promote financial stability, there is a growing body of research on the topic and various potential elements of a financial stability framework have recently been put forward by researchers from academic and policy-making institutions.

This conference aims to contribute to developing a framework to analyze financial system stability by bringing together researchers and policy-makers interested in the topic.

We seek to attract contributions in areas such as:

• macrofinancial stress-testing methods
• tools to detect financial stability risks
• structural models used to analyze financial stability questions
• implications for systemic risk of linkages among different parts of the financial system, including payment, clearing, and settlement systems
• methods to assess global financial risks

Format:

The conference will consist of four or five sessions, including a panel discussion on the experience of central banks with macro stress-testing, and will conclude with a wrap-up discussion in which invited panellists will be asked to present and discuss their views on the issues that deserve consideration for future research. Charles Goodhart, Professor Emeritus of Banking and Finance at the London School of Economics, will be one of the panellists.

Paper Submission and Registration Procedure:

A PDF file containing a completed draft or extended abstract (300-400 words) should be emailed to Pierre St-Amant at pstamant@bankofcanada.ca by 15 May. Completed drafts of accepted papers are due by 15 October, and final conference versions (to be posted on the Bank's website) 1 November. People submitting should also indicate whether they are willing to act as discussants. Questions may be directed to Pierre St-Amant (613 782-7386).

Expenses:

The Bank of Canada will refund economy-class travel and accommodation expenses for paper presenters and discussants.