Workshop on New Modeling Challenges for Central Banks in Latin America

The 8th Bolivian Conference on Development Economics (BCDE8) and the IDB’s Financial Stability and Development (FSD) network of South American Central Banks are pleased to organize a workshop on New Modeling Challenges for Central Banks in Latin America. The workshop will run parallel to contributed sessions of BCDE8.

Motivation

As developed economies recover slowly from a long period of depressed aggregate demand and China’s growth continues to slow down, emerging economies in Latin America are preparing their policy toolbox to address vulnerabilities from this changing environment. The rebalancing of economic growth across emerging and developed economies might trigger a new wave of capital flows reversals, exchange rate devaluations, tighter financial conditions, and persistently low levels of commodity prices, posing new challenges for monetary policy authorities across emerging economies. Furthermore, domestic vulnerabilities might also put pressure on monetary policy as persistent fiscal imbalances have eroded domestic public buffers. In this context, new tools and methods to study capital flow management, macro-prudential policies, financial stability, policy spillovers and fiscal and monetary policy coordination are high on the research agenda of many central banks in the region. The goal of this workshop is to gather ongoing research papers from central banks in the region that are incorporating these challenges into the otherwise standard modeling framework that have guided monetary policy making in the region.

Venue and Agenda

The workshop will be hosted by the 8th Bolivian Conference on Development Economics at Universidad Privada Boliviana in Cochabamba, Bolivia on Friday, October 27th. The workshop agenda is:

 

8:00 - 9:00        Registration

 

9:00 - 10:30      Monetary Policy in Emerging Economies: New Modeling Challenges (Parallel Session C5)

  • Mariana Garcia-Schmidt (BCCh) and Javier Garcia-Cicco (BCCh): “Revisiting the Exchange Rate Pass Through”. Discussant: Pablo Cuba-Borda (FRB)

  • Carolina Pagliacci (BCV) and Jennifer Peña (BCV): “Una medida sistémica del riesgo de liquidez”. Discussant: Mariana Garcia-Schmidt (BCCh)

 

12:00 – 13:30      Lunch Break

 

13:30 - 15:00      Monetary Policy and Financial Frictions in Emerging Economies (Parallel Session E5)

  • Jesus Bejarano (BANREP) Johannes Brumm (Karlsruhe Institute of Technology), Franz Hamann (BANREP), and Simon Scheidegger (University of Zurich): “Taylor Rules and Sudden Stops in Small Open Economies”. Discussant: Jorge Ponce (BCU)

  • Serafín Frache (BCU), Javier García-Cicco (BCCh) and Jorge Ponce (BCU): “Countercyclical Prudential Tools in an Estimated DSGE model”. Discussant: Elmer Sánchez (BCRP)

 

15:00 – 15:30      Coffee Break

 

15:30 -17:00      Monetary Policy and Financial Frictions in Emerging Economies (Parallel Session D4)

  • Elmer Sánchez (BCRP): “Mortgage Credit: Lending and Borrowing Constraints in a DSGE Framework”. Discussant: Jesus Bejarano (BANREP)

  • Joab Valdivia (Central Bank of Bolivia): “Evaluando la interacción de la política monetaria y fiscal a través de un DSGE-VAR”. Discussant: Daniel Hernaiz (IDB)

BCDE8 Events

Workshop participants are welcome to attend all of BCDE8 events, including keynote lectures, special sessions, parallel sessions, poster sessions, etc. For details please check the BCDE conference program: www.bcde8.org/schedule