Research Conference on Financial Cycles and Regulation
The Deutsche Bundesbank, the Research Center SAFE (Sustainable Architecture for Finance in Europe), the German Institute for Economic Research (DIW) and the Halle Institute for Economic Research (IWH) jointly organize a research conference on
Financial Cycles and Regulation
The recent Global Financial Crisis has highlighted the importance of financial cycles for macroeconomic and financial stability. While there is a widespread belief that credit and asset price cycles can affect both, there is no commonly accepted definition of the financial cycle and the analytical tools to describe it. In recent years, regulatory authorities in many countries have introduced new macroprudential policy instruments with the aim of dampening financial cycles and addressing systemic risk. Given the limited agreement on the characteristics and measurement of financial cycles, it seems important to revisit current modelling strategies. The latter includes the interaction between financial and business cycles and between different regulatory and stabilization policies. Since various regulatory measures (e.g., the countercyclical capital buffer) directly relate to the state of the financial cycle, a thorough understanding of the underlying macroeconomic concepts is a fundamental prerequisite for their successful application.
The aim of the conference is to improve our understanding of the nature of financial cycles and to discuss the corresponding analytical challenges and implications for macroprudential policy and financial regulation.
Organizing and Program Committee:
Tim Oliver Berg (Deutsche Bundesbank)
Franziska Bremus (DIW)
Martin Götz (SAFE and Goethe University)
Reint E. Gropp (IWH)
Rainer Haselmann (SAFE and Goethe University)
Oliver Holtemöller (IWH)
Michael Koetter (IWH)
Lukas Menkhoff (DIW)
Emanuel Mönch (Deutsche Bundesbank)
Benjamin Weigert (Deutsche Bundesbank)