Speaker: Marzio Bassanin and Raluca Di Benedetto
Speaker: Marzio Bassanin (LUISS)
Title: Debt Maturity Choice and Macroprudential Policy
Abstract: Exploiting the properties of non-linear DSGE model (solved using global methods) with an occasionally binding constraint and multiple collateral assets, the paper studies the linkages between the length of the private debt maturity structure and the systemic risk. The combination of a pecuniary externality and the multiple assets structure leads to an inefficiently short maturity choice. Indeed, the long-term bonds, partially Overcoming the collateral constraint, can reduce the systemic risk. The latter effect, not being internalized by atomistic agents, justifies a macroprudential regulation . It might implement a constrained efficient equilibrium characterized by a lower frequency and severity of financial crisis by raising the relative cost of short-term debt.
- Speaker: Raluca Di Benedetto (LUISS)
- Title: Reserve Accumulation and Financial Openness
- Abstract : In the aftermath of the global financial crisis, a new policy paradigm has Emerged in which old-fashioned policies such as capital controls have come into play becoming part of the standard policy toolkit.Breaking the link between foreign and domestic interest rates, capital controls Provide the government with an additional policy instrument Which can be used to address asset market imperfections.Using a small open economy version of the Calvo sticky price model with incomplete international financial markets modified for the accumulation of foreign reserves, the aim of this paper is to investigate Whether foreign reserves are needed in a country with a blackberries or less open capital account.in Particular Evaluates the different implications Arising When considering the optimal monetary policy with optimal foreign reserves with respect to optimal capital controls.