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The inaugural International Journal of Central Banking (IJCB) spring conference, on the topic of Provision and Pricing of Liquidity Insurance, will be hosted by the Federal Reserve Bank of New York.
Overview The IJCB is initiating two series of annual research conferences that will bring together leading economists from central banks and academic institutions to consider issues of critical importance for policymaking. Each spring conference will focus on topics related to financial stability; each fall conference will focus on topics related to the design and conduct of monetary policy. The proceedings of each conference (papers and comments) will be published in the IJCB.
Central, commercial, and investment banks as well as non-bank financial intermediaries all provide liquidity. Private financial institutions self-insure by building liquidity pools and managing the maturity profiles of their assets and liabilities. The way in which these institutions manage their liquidity risk and the way in which they determine the price, quantity, and structure of liquidity provision contracts depend on how the central bank provides and prices systemic liquidity insurance. Drawing on recent events in the global financial markets, this conference seeks to investigate the private and public provision of liquidity insurance. For example:
How much self-insurance should financial institutions provide?
How should they structure and price insurance to others? And in turn, how should the central bank structure and price systemic liquidity insurance?
Who should be able to purchase such insurance, what should it cost, and how should these contracts be structured?
What are the implications for capital requirements of financial institutions? Indeed, are liquidity and capital considerations separable?
The conference will include papers that address these questions directly as well as studies that provide tools, models, and empirical results that will help us understand the issues involved.
Conference Location Federal Reserve Bank of New York 33 Liberty Street New York, New York
Conference Organizers Douglas Gale, New York University Rafael Repullo, CEMFI Til Schuermann, Federal Reserve Bank of New York Frank Smets, European Central Bank and IJCB Tanju Yorulmazer, Federal Reserve Bank of New York