Asset Price Bubbles: Implications for Monetary, Regulatory, and International Policies
Cosponsored by the Federal Reserve Bank of Chicago and the World Bank Group.
Fifth Annual International Banking Conference
04/22/02
7:00 PM
Dinner
Welcoming and Opening Remarks
Michael H. Moskow, President, Federal Reserve Bank of Chicago
Cesare Calari, Vice President, World Bank Group
Moderator
Michael H. Moskow, President, Federal Reserve Bank of Chicago
Keynote
Randall S. Kroszner, Member, Council of Economic Advisers
04/23/02
7:30 AM
Breakfast
Moderator
Manuel Conthe, World Bank Group
Keynote
The Honorable Jean-Claude Trichet, Governor, Bank of France
- Asset Price Bubbles and Their Implications for Monetary Policy and Financial Stability
8:45 AM
Session 1: Recent Experience with Asset Price Bubbles
Moderator
Uri Dadush, World Bank Group
United States - U.S. Stock Market Crashes and Their Aftermath: Implications for Monetary Policy
Frederic S. Mishkin, Columbia University
Eugene N. White, Rutgers University
Japan - Asset Price Bubbles, Price Stability and Monetary Policy: Japan's Experience
Kunio Okina, Bank of Japan
Shigenori Shiratsuka, Bank of Japan
East Asia - Lending Booms, Real Estate Bubbles and the Asian Crisis
Charles Collyns, International Monetary Fund
Abdelhak Senhadji, International Monetary Fund
Latin America - Tropical Bubbles: Asset Prices in Latin America, 1980—2001
Santiago Herrera, World Bank Group
Guillermo Perry, World Bank Group
Discussants
Takeo Hoshi, University of California, San Diego
Ignazio Visco, Organization for Economic Cooperation and Development
10:45 AM
Session 2: Theory and History of Asset Price Bubbles
Moderator
Manuel Conthe, World Bank Group
Stocks as Money: Convenience Yield and the Tech–Stock Rollercoaster
John H. Cochrane, University of Chicago
Bubble Psychology
Werner De Bondt, University of Wisconsin, Madison
Bubbles in Real Estate Markets
Richard Herring, The Wharton School, University of Pennsylvania
Susan Wachter, The Wharton School, University of Pennsylvania
Discussants
Robert S. Chirinko, Emory University
Bertrand Renaud, Formerly World Bank Group
12:30 PM
Lunch
Introduction
W. James Farrell, Chief Executive Officer, Illinois Tool Works, Inc.
Keynote - Rational and Irrational Bubbles
Allan Meltzer, Carnegie Mellon University
2:15 PM
Session 3: Empirical Dimensions of Asset Price Bubbles
Moderator
Ravi Jagannathan, Northwestern University
Asset Prices, Financial and Monetary Stability: Exploring the Nexus
Claudio Borio, Bank for International Settlements
Philip Lowe, Bank for International Settlements
The Stock Market Crash of 1929: Irving Fisher Was Right
Ellen R. McGratten, Federal Reserve Bank of Minneapolis
Edward C. Prescott, University of Minnesota and Federal Reserve Bank of Minneapolis
A Stochastic Index of the Cost of Life: An Application to Recent and Historical Asset Price Fluctuations
Michael F. Bryan, Federal Reserve Bank of Cleveland
Stephen G. Cecchetti, Ohio State University
Róisín O'Sullivan, Ohio State University
Discussants
Andrew J. Filardo, Council of Economic Advisers and Federal Reserve Bank of Kansas City
Bruce Lehmann, University of California, San Diego
4:10 PM
Session 4: International Transmission of Financial Shocks
Moderator
Cesare Calari, World Bank Group
Globalization and Changing Patterns in the Transmission of Shocks in Financial Markets
Michael D. Bordo, Rutgers University and National Bureau of Economic Research
Antu Panini Murshid, University of Wisconsin, Milwaukee
Asset Price Bubbles and Stock Market Interlinkages
Franklin Allen, The Wharton School, University of Pennsylvania
Douglas Gale, New York University
Banking Policy and Macroeconomic Stability: An Exploration
Gerald Caprio, Jr., World Bank Group
Patrick Honohan, World Bank Group
A Global Perspective on Extreme Currency Linkages
Phillipp Hartmann, European Central Bank and Center for Economic Policy Research
Stefan Straetmans, University Maastricht
Casper de Vries, Erasmus University Rotterdam
Discussants
Ashoka Mody, International Monetary Fund
Anna J. Schwartz, National Bureau of Economic Research
7:00 PM
Dinner
Introduction
Jack B. Evans, Chief Executive Officer, The Hall-Perrine Foundation
Keynote
Robert J. Shiller, Yale University
04/24/02
8:15 AM
Session 5: Technology, the New Economy and Asset Price Bubbles
Moderator
Robert J. Darnall, Chairman, Board of Directors of the Federal Reserve Bank of Chicago
Valuation and New Economy Firms
Steven N. Kaplan, University of Chicago
Transactions Costs and Home Bias: Can They Explain Euro Depreciation?
Catherine L. Mann, Institute for International Economics
Ellen E. Meade, London School of Economics
Discussant
Lawrence Slifman, Board of Governors of the Federal Reserve System
10:00 AM
Session 6: Implications of Bubbles for Monetary Policy
Moderator
Robert Flood, International Monetary Fund
Asset Prices in a Flexible Inflation Targeting Framework
Stephen Cecchetti, Ohio State University
Hans Genberg, Graduate Institute of International Studies, Geneva
Sushil Wadhwani, Bank of England
Interest Rate Policy Should Not React Directly to Asset Prices
Marvin Goodfriend, Federal Reserve Bank of Richmond
Discussant
Benjamin M. Friedman, Harvard University
12:15 PM
Lunch
Introduction
Michael H. Moskow, President and Chief Executive Officer, Federal Reserve Bank of Chicago
Keynote
Michael Mussa, Institute for International Economics
1:45 PM
Session 7: Implications of Bubbles for Prudential Regulatory Policy
Moderator
James Nelson, Federal Reserve Bank of Chicago
The Historical Pattern of Economic Cycles and Their Interaction with Asset Prices and Financial Regulation
Charles Goodhart, London School of Economics
Asset Price Bubbles and Prudential Regulation
Jeffrey Carmichael, Australian Prudential Regulation Authority
Neil Esho, Australian Prudential Regulation Authority
The Morning after: Restructuring in the Aftermath of an Asset Bubble
Michael Pomerleano, World Bank Group
Discussants
Joaquim Vieira Levy, Ministry of Finance, Brazil
Ramon Moreno, Federal Reserve Bank of San Francisco
Eric Rosengren, Federal Reserve Bank of Boston
4:00 PM
Session 8: Looking Forward: Plans for Action to Protect against Bubbles
Moderator
Robert Z. Aliber, University of Chicago
Panelists - Banking Provisions and Asset Price Bubbles
The Honorable Jaime Caruana, Governor, Bank of Spain
Looking Forward: Plans for Action to Protect against Bubbles
Anthony Neoh, China Securities Regulatory Commission
Takatoshi Ito, Hitotosubashi University
Planning to Protect against Asset Bubbles
Vincent R. Reinhart, Board of Governors of the Federal Reserve System
