Macroprudential policy: promises and challenges

Course topics involve(a) A primer on financial markets modeling in open economy models and fundamentals of macro models of financial crises (b) Stylized facts of credit booms and Sudden Stops (c) Collateral constraints and the case for Macroprudential policy (d) Quantifying the effectiveness of optimal v.simple financial policy rules in Sudden Stop models(e) Time-inconsistency in the conduct of macropudential policy (f) The interaction between monetary and financial policies (Tinbergen’s rule and the need for coordination) This course is targeted at financial stability and research departments of Central Banks, Ph.D. students, research departments of private banks, and EU Officials (e.g. ECB, SSM, SRB).