The Bangko Sentral ng Pilipinas (BSP) hosted the 6th BSP International Research Conference on "Revisiting macro-financial linkages: Looking back and looking ahead.” The two-day event, 20-21 September 2016, was held at the Peninsula Manila Hotel, Makati City. The biennial conference brought together researchers from central banks, academe, and research institutions to discuss current challenges for central banks and insights on the future of monetary policy.
Governor Amando M. Tetangco, Jr. delivered the welcome address that focused on the growing interlinkages between the financial markets and the real sector, and underscored the significance of cross-border macro-financial linkages and, thus, the need to re-examine policy responses accordingly.
Eleven papers were accepted to shed light on the various channels (credit, liquidity, asset markets, among others) and the corresponding implications of these interlinkages. The first day featured two sessions. Session 1 on “Macro-financial linkages: From foreign financial markets to the domestic economy“ highlighted the international perspective of macro-financial linkages, that is, global developments having an impact on the domestic economy or the domestic financial market through interest rates, risk premia, and capital flows, among others. Session 2 looked at “Macro-financial linkages: Within the domestic economy“ focusing on how financial sector variables affect the real economy through the costs (interest rate channel) and availability of financing, to include issues on market and funding liquidity.
For the second day of the conference, Session 3 featured “Macro-financial linkages: Transmission mechanism of policy measures,“ particularly, how policy measures, such as macroprudential policies, affect the real economy by changing the constraints and incentives of financial institutions. The conference concluded with Session 4, a roundtable policy discussion on “Diagnosing the effectiveness of the monetary policy’s transmission.” The panelists included Vladimir Tomsik, Vice-Governor of the Czech National Bank, Shanaka J. Peiris, the International Monetary Fund Resident Representative for the Philippines, and James Villafuerte, an Economist from the Asian Development Bank, and the session was moderated by Eli Remolona, Chief Representative for Asia and the Pacific of the Bank for International Settlements.
The conference participants, session chairs and discussants included researchers and policymakers from international financial institutions, foreign universities, central banks in Europe and the Asia-Pacific as well as BSP officials and staff.