31st SUERF Colloquium – Baffi FinLawMetrics Conference 2014 

Money, Regulation and Growth: Financing New Growth in Europe 

sponsored by Intesa Sanpaolo 

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To be held at the Paolo Baffi Centre on Central Banking and Financial Regulation, Università Bocconi, Via Roentgen 1, I-20136 Milan, on 4-5 June 2014.

Call for Papers 

Notes on the theme of the event. 

In recent years, economic growth in Europe has been unsatisfactorily low. Governments, parliaments and international organisations are looking for ways to stimulate growth and improve employment. The organisers invite researchers at universities, international organisations and financial institutions to submit papers in which they analyse the potential roles of monetary policy, financial regulation and financial markets and institutions in efforts to revitalize the European economy. The event will consist of a mix of plenary sessions and work in three parallel commissions. Research questions to be discussed in the three commissions include:

Commission 1. Monetary policy and growth

  • What role can monetary policy play in sustaining or reviving growth?
  • Is Keynes’ liquidity trap theory still relevant in the 21st century?
  • Has the crisis in recent years triggered a lasting (or merely temporary) change in the paradigm of the role and objectives of central banks?
  • What is the appropriate division of responsibilities between the Government and the central bank regarding improvement of economic growth?
  • Has the crisis altered our views on the optimal institutional status of central banks (independence, policy coordination versus independent pursuit of various policies by mutually independent institutions)?
  • How has the crisis changed monetary policy strategies?
  • Is the old school (narrow) inflation targeting a thing of the past?
  • Can asset price inflation after the experience of multiple bubbles be ignored by central banks in the future?
  • How will monetary policy and macroprudential policies interact in practice, and what is the evidence to date?
  • How large and serious are differences in financing conditions across EA countries?
  • What instruments are available for the monetary authorities?
  • To what extent have non-conventional policies already alleviated these problems?
  • How should the monetary authorities cope with public and private debt overhangs?
  • Is higher inflation (surprise inflation, announced inflation targets) an acceptable solution?
  • What are the costs and benefits?
  • What would be the distributive effects across countries and across constituencies within countries? Is monetary financing an appropriate solution when the aim is to stimulate growth?
  • How do the policies of major central banks across the world differ in this respect?
  • What are the inflationary risks from monetary financing in the short, medium and long term?

Commission 2. Financial regulation and growth

  • What are the costs and benefits of financial regulation?
  • How should “optimal financial regulation” be defined?
  • Has bank prudential regulation become too detailed and complex?
  • Should banks be required to have a greater capital cushion than is currently envisaged under Basel III?
  • Should financial regulators be concerned about economic growth?
  • Is it possible to design a regulatory and supervisory framework which can provide a well-functioning trade-off between financial stability and maintenance of economic growth?
  • What kind of regulation could have prevented the bubble-burst cycle of the last decade?
  • Is there an emerging consensus on the design of regulatory and supervisory systems?
  • What effects do more intensive bank regulation and tighter supervision have on economic growth? How much growth will be lost in normal times if credit growth is constrained?
  • What are the mechanisms through which such constraints will be felt?
  • What does the first empirical evidence in the context of preparation and implementing Basel III indicate?
  • How far is it possible to move from a backward-looking approach to regulation and supervision to a forward-looking approach?
  • Is it possible to develop appropriate measures to identify and support regulatory prevention of the next looming bubbles or crisis?
  • How should regulators and supervisors identify future bubbles and crises and what should they do to prevent them?
  • How do we avoid circumvention and undesired side effects from regulation and supervision?
  • Is more deleveraging required in Europe/ in various European countries?
  • If so, how will it happen (alternative scenarios)?
  • How much is driven by banks or other capital providers through credit supply restraint, how much by borrowers (firms and households) through low credit demand?
  • What combination of measures will most likely entail which scenarios?
  • What scenarios would be preferable from a growth perspective?

Commission 3. Economic growth and financial institutions and markets

  • Which financial institutions in Europe have in recent years been most active in the financing of economic growth?
  • What is the proper role of banks and other financial intermediaries in the provision of venture capital?
  • How can risk-sharing provisions in contracts be used to further the participation of banks in the financing of innovative firms?
  • Should pension funds invest in the venture capital industry?
  • Does/will stiffer bank regulation trigger more securitized lending?
  • To what extent can corporate bond markets contribute to the financing of economic growth?
  • Which differences are there between the funding opportunities of large companies and SMEs?
  • Are there special corporate governance problems in upstart companies and if so, how should they be dealt with?
  • What contribution do/can universities in Europe make by developing research and teaching in entrepreneurship and financing and management of upstart companies?
  • What is the proper balance between debt and equity in companies strongly involved in research and development?
  • Are there important cases where the potential conflicts between EU’s state aid rules and National Government’s efforts to foster research and development have been clarified?
  • How does tax policy influence bank behaviour, savings behaviour and financing decisions and in this way contribute to, or hamper, economic growth?
  • How to assess policy measures by the EU and various National Governments in this respect since 2007?
  • How have ailing national banking systems in several EU countries affected financing conditions, credit supply and economic growth?
  • Through what channels does integration of financial markets influence economic growth?
  • What role can we expect the EIB and national public institutions to play in the financing of economic growth in Europe?
  • Given the experience of the banking crisis, is there a viable role for securitisation in the post-crisis era?

Researchers from financial institutions, universities, central banks and international organisations are invited to submit papers on the above and related topics to be discussed in three parallel Commissions. Papers should have clear practical or policy implications and should preferably not be excessively technical. The SUERF Marjolin Prize (EUR 2,000) will be awarded for the best contribution by young researchers and is restricted to (co-) authors aged under 40 on 4 June 2014.

Authors should submit 2-3 page abstracts or a full paper online through the SUERF Website at www.suerf.org/milan2014 by 31 January 2014. These will be reviewed by the event’s scientific committee. Notification of acceptance or non-acceptance will be provided before 28 February 2014. Papers already published prior to the event are not eligible. Enquiries should be addressed to [email protected].