Payments and Monetary and Financial Stability - 12/13 November 2007

Central banks' typical objectives of monetary and financial stability grew from their early role in payment systems. Today, central banks around the world continue to provide the ultimate settlement asset and typically strengthen their influence via a role in ownership, operation or oversight of key components of the financial infrastructure. But, as the payments and settlement landscape evolves, it is essential that policymakers and practitioners continue to adapt and update their thinking and, through a deeper understanding of the links between payments and monetary and financial stability, work together to make the right policy choices. This two-day conference provided just such an opportunity, bringing the academic, policy and practitioner communities together to debate some of the key issues of the day. The proceedings to this conference may be found at the link below, with all of the papers presented also available on this page.

Payments and Monetary and Financial Stability (1 mb)

Day 1 - 12 November
Day 2 - 13 November

Economists at the Bank of England have also been working on a volume on this theme, entitled: "Large-value payment systems - economic theory and central bank policy issues". Publication of this volume is planned for early next year - an introduction may be found at the link below.

Large-value payment systems - economic theory and central bank policy issues (53k)

Monday 12 November

9.00am	Opening Remarks
	Payments and monetary and financial stability (links to ECB website) Gertrude Tumpel-Gugerell (Member of the Executive Board, European Central Bank)

9.15am	Theme 1: Payment systems and monetary stability
	Chair: Charles Goodhart (London School of Economics)
	Transactions, Credit and Central Banking in a Model of Segmented Markets (1.4mb) By Steve Williamson (Washington University, St Louis) Slides (1.3mb) Comments (158k) Discussant: Charles Kahn (University of Illinois and Urbana-Champaign) Why are there no intraday money markets? (324k) By Antoine Martin and Jamie McAndrews (Federal Reserve Bank of New York) Slides (49k) Comments (332k) Discussant: Paolo Angelini (Banca d'Italia)

10.45am	Coffee

11.15am	Monetary Policy in Channel Systems (446k) By Aleksander Berentsen (University of Basel) and Cyril Monnet (European Central Bank/Federal Reserve Bank of Philadelphia) Slides (121k) Comments (112k) Discussant: Erlend Nier (Bank of England) Operational problems and aggregate uncertainty in the federal funds market (196k) By Elizabeth Klee (Board of Governors of the Federal Reserve Board) Slides (373k) Comments (126k) Discussant: Nuno Cassola (European Central Bank)

12.45pm	Lunch

2:15 pm	New markets and new demands: challenges for central banks in the wholesale market infrastructure (104k) Keynote speech by Nigel Jenkinson (Bank of England)

2.45pm	Theme 2: Interdependencies between payment systems and settlement systems
	Chair: Sean O’Connor (Bank of Canada)
	Models of foreign exchange settlement and informational efficiency in liquidity risk management (349k) By Jochen Schanz (Bank of England) Slides (282k) Comments (142k) Discussant: James Chapman (Bank of Canada) Congestion and Cascades in Coupled Payment Systems (761k) By Morten Bech (Federal Reserve Bank of New York), Walt Beyeler (Sandia National Laboratories), Robert Glass (Sandia National Laboratories), Fabien Renault (Banque de France), and Kimmo Soramäki (European Central Bank) Slides (1.9mb) Comments (197k) Discussant: Stephen Millard (Bank of England)

4.15pm	Tea

4.45pm	Panel Session
	Panellists: Denis Beau (Banque de France) - Chair Colin Church (Citigroup) Sophie Gautie (BNP Paribas) Gerard Hartsink (ABN Amro) Marshall Millsap (JP Morgan Chase) Slides (214k) Denis Beau Slides (343k) Sophie Gautie Slides (1.4mb) Gerard Hartsink

6.00pm	Close of day

8:00pm (approx)	Conference dinner

Tuesday 13 November

9.00am	High level remarks: Globalisation of the wholesale market infrastructure and central bank policy
	Jean-Claude Trichet (President, European Central Bank) - Chair Timothy Geithner (President, Federal Reserve Bank of New York) Sir John Gieve (Deputy Governor, Bank of England) Christian Noyer (Governor, Banque de France)

10.15am	Coffee

10.45am	Theme 3: OTC derivatives clearing arrangements
	Panel Session
	Panellists: Patrick Parkinson (Board of Governors of the Federal Reserve System) - Chair Peter Axilrod (DTCC) Ann Marie Davis (Citadel) Simon Grensted (SwapClear) Robert Pickel (ISDA) Slides (21k) Patrick Parkinson Slides (1.5mb) Simon Grensted

12.00pm	Theme 4: The role of non-banks in payment systems
	The role of non-banks in payment systems (386k) By Simonetta Rosati (European Central Bank) and Stuart Weiner (Federal Reserve Bank of Kansas City) Slides (487k) Comments (28k) Discussant: Sujit Chakravorti (Federal Reserve Bank of Chicago)

12.45pm	Lunch

2.15pm	Theme 5: Financial stability vulnerabilities and payment systems
	Chair: Nigel Wicks (Euroclear Group)
	A competitive multi-agent model of interbank payment systems (218k) By Marco Galbiati (Bank of England) and Kimmo Soramäki (European Central Bank) Slides (1mb) Comments (57k) Discussant: Cornelia Holthausen (European Central Bank) The Loss of Confidence in Bank Money in the Great Depression (165k) By Andrea Gerali (Banca d'Italia) and Franco Passacantando (Banca d'Italia) Slides (841k) Comments (314k) Discussant: James Moser (CFTC)

3.45pm	Tea

4.15pm	Panel Session
	Panellists: Alexandre Lamfalussy - Chair Alberto Giovannini (Unifortune) Andrew Gracie (Crisis Management Analytics Ltd) Peter Praet (National Bank of Belgium) Daniela Russo ( European Central Bank) John Trundle (Euroclear)

5.45pm	Concluding remarks
	Daniela Russo (European Central Bank)

6.00pm (approx)	Conference concludes