" The primary objective of the MNB shall be to achieve and maintain price stability. Without prejudice to its primary objective, the MNB shall support the maintenance of the stability of the financial intermediary system, the enhancement of its resilience, its sustainable contribution to economic growth; furthermore, the MNB shall support the economic policy of the government using the instruments at its disposal. "
ResearchAcademic Conferences9th Macroeconomic Policy Research Workshop on 'Understanding Financial Frictions' September 30-October 1, 2010

9th Macroeconomic Policy Research Workshop on 'Understanding Financial Frictions' September 30-October 1, 2010


Ninth Macroeconomic Policy Research Workshop on


Understanding Financial Frictions

September 30- October 1, 2010

Organized by the Magyar Nemzeti Bank, in Collaboration with the Centre for Economic Policy Research





Final Programme (version: September 27!!!)


September 30, Thursday


08:30 – 08:45 Registration

  (Magyar Nemzeti Bank, Address: Szabadság tér 8-9.)

08:45 – 09:00 Welcome address

Ferenc Karvalits (Deputy Governor, Magyar Nemzeti Bank)


Session 1

Chair: László Halpern (Institute of Economics, Hungarian Academy of Sciences)

09:00 – 09:50

Felipe Iachan (MIT): A monetary model of banking (joint with Abhijit Banerjee, MIT and CEPR, and Eric Maskin, IAS Princeton

Discussant: Ákos Valentinyi (Cardiff and CEPR)

09:50 – 10:40

Filippo Taddei (Collegio Carlo Alberto): On the Inefficiencies of Cheap Credit (joint with Alberto Martin, CREI, UPF, CEPR)

Discussant: Andrea Canidio (Central European University)


10:40 – 11:00 Coffee break


11:00 – 11:50

Ralph de Haas (European Bank for Reconstruction and Development): The crisis as a wake-up call. Do banks tighten screening and monitoring during a financial crisis? (joint with Neeltje van Horen, Central Bank of the Netherlands )

Discussant: Kasper Roszbach (Sveriges Riksbank)

11:50 – 12:40

Refet S. Gürkaynak (Bilkent University and CEPR): Leverage of Financial Intermediaries and Cyclical Fluctuations (joint with Burçin Kisacikoglu, Bilkent University)

Discussant: Balázs Világi (MNB)


12:40 – 14:00 Lunch


14:00 – 15:30

Keynote Speech

Ricardo Caballero (MIT), On the Macroeconomics of an Uncertain Global Recovery

Session 2

Chair: Péter Pete (Eötvös Loránd University, Budapest)

15:30 – 16:20

Nicola Gennaioli (CREI, Universitat Pompeu Fabra and CEPR): Financial Innovation and Financial Fragility (joint with Andrei Shleifer, Harvard and Robert Vishny, University of Chicago)

Discussant: Peter Kondor (Central European University)


16:20 – 16:40 Coffee break


16:40 – 17:30

Alp Simsek (Harvard): Fire Sales in a Model of Complexity (joint with Ricardo Caballero, MIT)

Discussant: Adam Zawadowski (Boston University)

17:30 – 18:20

Katrin Rabitsch (Magyar Nemzeti Bank and Central European University): An Incomplete Markets Explanation to the UIP Puzzle

Discussant: Refet S. Gürkaynak (Bilkent University and CEPR)


20:00   Danube cruise with dinner


 October 1, Friday


Session 3

Chair: Frank Smets (ECB)

9:00 – 9:50

Martin Andreasen (Bank of England): The Business Cycle Implications of Banks’ Maturity Transformation (joint with Marcelo Ferman, LSE, and Pawel Zabczyk, BoE and LSE)

Discussant: Peter Karadi (Magyar Nemzeti Bank)

9:50 – 10:40

Olivier Pierrard (Central Bank of Luxembourg and Catholic University of Louvain): Banking shock and monetary reactions in a New Keynesian model (joint with Gregory de Walque, National Bank of Belgium and University of Namur)

Discussant: Tommaso Monacelli (Università Bocconi, IGIER, and CEPR)


10:40 – 11:00 Coffee break


Session 4

Chair: Márton Nagy (Magyar Nemzeti Bank)

11:00 – 11:50

Egon Zakrajsek (Federal Reserve Board): Uncertainty, Financial Frictions, and Investment Dynamics (joint with Simon Gilchrist, Boston University, NBER and Jae W. Sim, FRB)

Discussant: Frank Smets (ECB and CEPR)

11:50 – 12:40

Alberto Martin (CREI, Universitat Pompeu Fabra and CEPR): Theoretical notes on bubbles and the current crisis (joint with Jaume Ventura, CREI, UPF and CEPR)

Discussant: Nobuhiro Kiyotaki (Princeton and CEPR)


12:40 – 14:00 Lunch


14:00 – 15:30

Keynote Speech

Nobuhiro Kiyotaki (Princeton and CEPR): Financial Intermediation and Credit Policy in Business Cycle Analysis (joint with Mark Gertler, NYU)


15:30 – 15:40 Coffee break



Session 5

Chair: Júlia Király (Deputy Governor, Magyar Nemzeti Bank)

15:40 – 16:30

Philippe Bacchetta (University of Lausanne and CEPR): The Demand for Liquid Assets and International Capital Flows (joint with Kenza Benhima, University of Lausanne)

Discussant: Robert Kollmann (ECARES, Université Libre de Bruxelles, CEPR)

16:30 – 17:20

Javier Bianchi (University of Maryland): Overborrowing, Financial Crises and 'Macro-prudential Taxes' in an Equilibrium Model of Business Cycles and Asset Prices (joint with Enrique G. Mendoza, University of Maryland)

Discussant: Kenza Benhima (University of Lausanne)


17:30   Wine tasting




Organizing committee:

  • Péter Benczúr (MNB and Central European University)
  • Péter Karádi (MNB)
  • Péter Kondor (Central European University)
  • Frank Smets (ECB and CEPR)


The program of last year’s workshop can be found at Academic Conferences page.

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