As part of the response to the ongoing financial crisis, the U.S. government has significantly expanded its role in the economy. This increased direct involvement will surely be followed by legislative overhaul of the supervisory system. Individual and corporate market participants will also be adjusting their own behaviors and institutions
Download Audio as MP3 in light of the experience of the past year. Both of these reactions may make it difficult for the government to exit policies designed to handle the crisis.
More broadly, the appropriate role of government in the economy is also in question. Should fiscal policy continue to be used aggressively to help to stabilize the economy? If so, are there better ways to design automatic stabilizers? Should monetary policy respond forcefully to apparent asset bubbles in the future? Would that make a repetition of the crisis less likely? Should the Federal Reserve retain some of its newly instituted credit facilities so as to have more levers on financial markets and the economy?
This AEI conference will combine the experiences of market participants with new analysis from academics. In the first session, AEI resident scholar Vincent R. Reinhart will present his findings gleaned from a series of conversations with market participants. Angel Ubide of Tudor Investment Corporation; Greg Ip, the U.S. economics editor of The Economist; and Christopher Whalen of Risk Analytics will respond.
The second session includes prominent academics who are all contributing scholarly papers to a forthcoming edited volume on the crisis. Frederic Mishkin and Ricardo Reis of Columbia University, Ethan Ilzetzki of London School of Economics, and Michael Bordo of Rutgers University will present an initial overview of the proposed research.
|11:00||Panel I: View from Markets|
|Presenter:||Vincent R. Reinhart, AEI|
|Discussants:||Greg Ip, The Economist|
|Angel Ubide, Tudor Corporation|
|Christopher Whalen, Risk Analytics
||Panel II: Academic Perspective|
|Presenters:||Michael Bordo, Rutgers University|
|Frederic Mishkin, Columbia University|
|Vincent R. Reinhart, AEI|
|Ricardo Reis, Columbia University|
|Ethan Ilzetzki, London School of Economics|
Michael Bordo is a professor of economics at Rutgers University. He has worked with numerous central banks, including the Federal Reserve, the Bank of England, and the Bank of Switzerland. He is also an editor for the International Journal of Central Banking. He has written extensively on stock market activity, the Great Depression, and central bank policy and has compiled the widely used Financial Crises Database. During the current downturn, Mr. Bordo has been critical of beginning monetary tightening too soon.
Greg Ip is the U.S. economics editor for The Economist, based in Washington D.C. He covers the economy; financial markets; and monetary, fiscal, and regulatory policy. He contributes to The Economist's blog, Free Exchange, and has commented frequently on radio and television, including CNBC, BBC, CNN, MSNBC, The Newshour with Jim Lehrer, and National Public Radio. Prior to his current position, Mr. Ip was a reporter for the Wall Street Journal, most recently as chief economics correspondent in Washington. Mr. Ip has shared in several awards for journalism on topics that include the mortgage and housing crisis, Alan Greenspan's chairmanship of the Federal Reserve, the economic consequences of the 9/11 terrorist attacks, and the East Asian financial crisis.
Ethan Ilzetzki is an assistant professor in the department of economics and an associate at the Center of Economic Performance at the London School of Economics. His research focuses on macroeconomics and fiscal policy, with a particular interest in macroeconomic policy in developing countries. His most recent research, with Enrique Mendoza and Carlos Vegh, examines the fiscal multiplier for government stimulus programs. He has also researched political economic aspects of fiscal policy in developing countries. He has held positions at the International Monetary Fund, the U.S. Department of Treasury, and the Millennium Challenge Corporation.
Frederic Mishkin is the Alfred Lerner Professor of Banking and Financial Institutions at the Graduate School of Business, Columbia University. He is also a research associate at the National Bureau of Economic Research and from 2006 to 2008 was a governor of the Board of Governors of the Federal Reserve System. He has also been a senior fellow at the Federal Deposit Insurance Corporation Center for Banking Research and past president of the Eastern Economic Association. In the 1990s, he was executive vice president and director of research at the Federal Reserve Bank of New York and an associate economist of the Federal Open Market Committee of the Federal Reserve System. Mr. Mishkin's research focuses on monetary policy and its impact on financial markets and the aggregate economy. He is the author of more than fifteen books, including The Next Great Globalization: How Disadvantaged Nations Can Harness Their Financial Systems to Get Rich (Princeton, 2006) and Monetary Policy Strategy (MIT Press, 2007), and has published over 150 articles in professional journals and books. He has been a consultant to the Board of Governors of the Federal Reserve System, the World Bank, the Inter-American Development Bank, the International Monetary Fund, and numerous central banks throughout the world.
Ricardo Reis is a professor of economics at Columbia University, a research associate at the National Bureau of Economic Research, and a research affiliate at the Centre for Economic Policy Research. He taught at Princeton University before joining the Columbia faculty. His main area of research is macroeconomics, but he has also studied monetary policy and models of inattentiveness and measured the persistence of macroeconomic series and how they affect business cycles and banking crises. His current focus is on liquidity injections during a financial crisis. Mr. Reis serves on the board of editors of the American Economic Review and is an associate editor of the Journal of Monetary Economics, the Journal of Money Credit and Banking, and the Economic Journal.
Vincent R. Reinhart is a resident scholar at AEI. A former director of the Federal Reserve Board's Division of Monetary Affairs, he has spent more than two decades working on domestic and international aspects of U.S. monetary policy. Mr. Reinhart held a number of senior positions in the Divisions of Monetary Affairs and International Finance and served for the last six years of his Federal Reserve career as secretary and economist of the Federal Open Market Committee. Mr. Reinhart worked on topics as varied as economic bubbles and the conduct of monetary policy, auctions of U.S. Treasury securities, alternative strategies for monetary policy, and the efficient communication of monetary policy decisions.
Angel Ubide is the director of global economics at Tudor Investment Corporation, a leading global funds management company. He is a visiting fellow at the Peterson Institute for International Economics and an active member of several international economic policy organizations, including the Euro50 Group, the European Central Bank's Shadow Governing Council, the Reinventing Bretton Woods Foundation, and the Centre for European Policy Studies. He writes a biweekly column on international economics for El País, the leading newspaper in Spain, and contributes regularly to Vox, Telos, and Aspenia. Mr. Ubide has written extensively on international macroeconomics, banking, and exchange rates, and his work has been published in major international journals and leading newspapers. He was formerly an economist at the International Monetary Fund and a management consultant with McKinsey & Company.
R. Christopher Whalen is the cofounder and managing director of Institutional Risk Analytics, where he is responsible for sales, business development, and editorial activities. He has worked as an investment banker, research analyst, and journalist for more than two decades and has covered a variety of industry sectors, including technology and financial institutions. In addition to editing the newsletter The Institutional Risk Analyst, Mr. Whalen contributes regularly to publications such as Barron's, The International Economy, and American Banker. He is a member of the Professional Risk Managers International Association; he volunteers as a regional director of the association's Washington, D.C., chapter; and he chairs its speakers committee.