Frontiers In Central Banking

A Conference Jointly organized by the National Bank of Hungary, the University of Munster, Germany, and the Viessmann European Research Centre

MAY 10-12, 2007, at the National Bank of Hungary, Budapest, Hungary

Papers are conference drafts and should not be cited without the permission of the Authors or Editors

Time

Activity

Thursday May 10, 2007

Arrival of Participants

1:45-2:00pm

Opening Remarks

Session 1- CHAIR: György Szapáry , MNB

2:00-2:45pm

Why Not Price Level Stability?

Frank Smets, ECB

Vitor Gaspar, Banco de Portugal *

2:45-3:30pm

Discretion Versus Rules: Lessons from the Volcker-Greenspan Era

Robert Hetzel, Federal Reserve Bank of Richmond

3:30-4:00pm

Coffee break

Session 2 – CHAIR: Sylvester Eijffinger, Tilburg

4:00-4:45pm

Analysis of Financial Stability

Charles Goodhart, LSE, Dimitri Tsomocos, Oxford University

4:45-5:30pm

How Should Central Banks Be Designed To Achieve Financial Stability?

Alicia Garcia-Herrero, BIS and Bank of Spain

7:00pm-10:00pm

Dinner on the Danube

Friday, May 11, 2007

Session 3 – CHAIR: Julius Horvath, CEU

9:00-9:45am

Central Bank Independence and Exchange Rate Regimes

Thomas Willett, Eric Chiu, Sirathorn B.J. Dechsakulthorn, Stefanie Walter Claremont Graduate University

9:45pm-10:30am

Does Central Bank Independence Cause Low Inflation? A Sceptical View

Bernd Hayo, Philipps University, Carsten Hefeker, University of Siegen

10:30-11:00am

Coffee break

Session 4 – CHAIR: György Kopits, CEU

11:00-11:45am

The Economic Impact of Central Bank Transparency: A Survey

Carin van der Cruijsen, De Nederlandsche Bank and University of Amsterdam , Sylvester Eijffinger, CentER, Tilburg University , RSM Erasmus University and CEPR

11:45-12:30pm

The Limits of Transparency

Alex Cukierman, Tel-Aviv University

12:30-2:00pm

Lunch

Session 5 – CHAIR: Vitor Gaspar, Banco de Portugal

2:00-2:45pm

Monetary Policy Committees in Action: Is There Any Room for Improvement?

Philipp Maier, Bank of Canada

2:45-3:30pm

The Role of Corporate Governance in the Effectiveness of Central Banking: Evidence from Developing and Transitional Countries

Ifthekar Hasan, Rensselaer Polytechnic Institute , Loretta J. Mester, Federal Reserve Bank of Philadelphia

3:30-4:00pm

Coffee break

Session 6 – CHAIR: Donato Masciandaro, Bocconi

4:00-4:45pm

National Central Banks in a Multi-National System

David Mayes, Bank of Finland , Geoffrey Wood, City University London

4:45-5:30pm

Alternative Policy Rules in a Model with Endogenous Sudden Stops

Gianluca Benigno, LSE , Christopher Otrok, University of Virginia , Alessandro Rebucci, International Monetary Fund, Eric Young, University of Virginia

6:30-10:00pm

Dinner at MNB

Saturday May 12, 2007

Visiting Budapest and Szentendre