Banner image for FMC 25 Years: Fostering a Resilient Economy and Financial System - The Role of Central Banks

May 17–18, 2021

Session Videos and Presentations

Opening keynote speech
Sovereign Markets, Global FactorsOff-site link
Richard Clarida, Vice Chair, Board of Governors

Policy Session 1: Is the Monetary Policy Toolkit Adequate to Meet Future Challenges?
The limited scope for reducing policy rates over the last decade has induced central banks to place increased reliance on balance sheet policy, which raises a variety of underexplored topics. What is the optimal balance sheet strategy for central banks? Is balance sheet policy sufficient for central banks to be able to meet their mandate(s)—especially if the economy is hit by another adverse shock? Does balance sheet policy come with costs that also need to be taken into consideration, such as increased risks to central bank independence or to financial stability?
Moderator: Julia Coronado, President and Founder, MacroPolicy Perspectives
Panelist: Willem Buiter, Visiting Professor of International and Public Affairs, Columbia University
Panelist: Joseph Gagnon, Senior Fellow, Peterson Institute for International Economics
Panelist: Simon Potter, Vice Chairman, Fixed Income, Millennium Management

Armchair discussion
Dave Altig and Lawrence H. Summers, Charles W. Eliot University Professor and President Emeritus, Harvard University

Policy Session 2: Is the Financial System's Backbone, the U.S. Dollar, Also a Transmitter of Stress?
The central role of the U.S. dollar in the international financial system was highlighted by the global scramble for dollars in March 2020. This reliance on the dollar provides some significant efficiencies during normal times, but it also means that stresses in U.S. dollar markets can have a global impact. This session examines the central role of the U.S. dollar, its implications for global financial markets, and the potential for changes in the role of the U.S. dollar.
Moderator: Robert Kaplan, President and Chief Executive Officer, Federal Reserve Bank of Dallas
Presenter: Arvind Krishnamurthy, John S. Osterweis Professor of Finance, Stanford Graduate School of Business, and Research Associate, National Bureau of Economic Research [Presentation Adobe PDF file format]
Discussant: Thomas Jordan, Chairman of the Governing Board, Zurich, Swiss National Bank
Discussant: Michael Howell, Founder and Managing Director, CrossBorder Capital [Presentation Adobe PDF file format]