Macroprudential Policy: What Could Possibly Go Wrong? (By invitation only)
Monday, April 27, 2015 / 9:30 am - 10:30 am
Claude Lopez, Managing Economist and Director of Research, Milken Institute
As some central banks, including the Federal Reserve, contemplate normalization of monetary policy, they are turning to macroprudential policy to manage future systemic risk in financial markets. Janet Yellen and Mario Draghi, among others, have said they are pinning their hopes for managing stability in the context of Basel III on macroprudentialism, an approach that addresses potential risks to the financial system as a whole. Despite central banks' clear intention that this policy will play a significant role in developed economies, few policymakers or financial players know what macroprudential policy is, much less how to assess its efficacy or necessity. This private session will be a unique opportunity for participants to gain a better understanding of these tools, how they work and their implications for broader monetary policy. Participants will also be able to interact in a discussion on how specific aspects of future regulations might impact their business decisions.