Money markets are important for central banks as they represent the initial step in the monetary policy transmission mechanism. All around the world, money markets have been severely affected by the financial and sovereign debt crisis, reacting to new regulations and policy action, and more generally to broad changes in the financial market environment. In response to the crisis, central banks have implemented non-standard measures, applied negative interest rates and engaged in asset purchase programmes. As a result, they have considerably expanded their balance sheets. The workshop will bring together central bankers, practitioners and academics to discuss relevant changes in money markets, the impact of these changes on market functioning and the likely implications for the implementation of monetary policy. A panel with representatives from the financial industry is also envisaged.
Submissions are welcome on all topics relating to money markets, in particular:
- the functioning of the transmission mechanism and optimal design of the monetary policy implementation framework in the new market environment;
- the impact of market fragmentation on monetary policy implementation, including empirical studies on segmentation in the money markets of the euro area and other major economies;
- structural changes in money markets and interlinkages between different segments of the money market (e.g. the unsecured, secured and foreign exchange swap markets), and spillover effects in the euro area and other major economies;
- the appropriate tools/indicators to assess the stance and transmission of monetary policy, given the measures implemented (i.e. non-standard monetary policy instruments, negative interest rates and central bank asset purchases);
- the impact of regulatory initiatives on the money market and monetary policy implementation (e.g. regulation-driven demand for central bank reserves);
- the impact of central bank balance sheet expansion and negative rates on the functioning of secured and unsecured money markets;
- the future of money markets, given the unprecedented level of central bank intervention.
Papers should be submitted in PDF format to MMWorkshop@ecb.europa.eu by no later than 2 October 2015. The authors of accepted papers will be notified in mid-October 2015.
Attendance of the workshop is by invitation only. It will start in the morning of Monday, 7 December 2015 and end in the early afternoon on Tuesday, 8 December 2015. A dinner is planned for the evening of the first day.
The travel (economy fare) and accommodation expenses of academic speakers and discussants will be reimbursed.
Holger Neuhaus, Olivier Vergote, Jens Eisenschmidt, Florian Heider and Tobias Linzert (all ECB).
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