Financial Globalization

December 2-3, 2004
A conference sponsored by the Federal Reserve Bank of New York.

Overview
Financial globalization has many potential benefits: protection against national shocks, more efficient global allocation of resources, and improvements in international standards of living. Nevertheless, the interconnectedness fostered by globalization increases the exposure of participants to financial and real shocks and to the risk that sudden capital reversals may translate into large-scale economic disruption. This one-and-a-half day conference will bring together a small number of distinguished researchers who will present papers that explore and evaluate the benefits and vulnerabilities arising from international capital mobility. Specific topics of interest include recent trends in international capital flows, their determinants, and their implications; frictions in, and obstacles to, increased global integration; the timing, extent, and methods of international adjustment to macroeconomic shocks and sustained trade imbalances; and the redesign of institutions to better serve global capital markets.

Preliminary Agenda
Thursday, December 2
8:30 a.m. Continental breakfast
9:00 a.m. Welcoming Remarks
Timothy Geithner
President
Federal Reserve Bank of New York
SESSION 1: Financial Interdependence: Causes and Consequences
Chair: Linda S. Goldberg (Federal Reserve Bank of New York)
9:15 a.m. Financial Globalization and Exchange Rates PDF

Speaker:
Philip Lane (Trinity College Dublin)
with Gian Maria Milesi-Ferretti (International Monetary Fund)

Discussants:
Michael Dooley (U C Santa Cruz)
Andrew Rose (U C Berkeley)

10:25 a.m. Morning Break
10:40 a.m. An International Financial Transmission Model PDF

Speaker:
Marcel Fratzscher (European Central Bank)
with Michael Ehrmann (European Central Bank) and Roberto Rigobon (MIT Sloan School of Management)

Discussants:
Cedric Tille
(Federal Reserve Bank of New York)
Mark Spiegel (Federal Reserve Bank of San Francisco)

11:50 a.m. International Trade, Production Sharing, and the Transmission of Business Cycles PDF

Speaker:
Linda Tesar (University of Michigan)
with Ariel Burstein (U C Los Angeles) and Chris Kurz (University of Michigan)

Discussants:
Jon Faust (Board of Governors of the Federal Reserve System)
Kei-Mu Yi (Federal Reserve Bank of Philadelphia)

1:00 p.m. Luncheon and Keynote Address

Luncheon - Officers' Dining Room

Keynote Speaker: Stanley Fischer Vice Chairman of Citigroup and President of Citigroup International

SESSION 2: Financial Globalization and Asset Prices
Chair: Paolo Pesenti (Federal Reserve Bank of New York)
2:30 p.m. The Euro Area and World Interest Rates PDF

Speaker:
Menzie Chinn (University of Wisconsin, Madison)
with Jeffrey Frankel (Harvard University)

Discussants:
Gian Maria Milesi-Ferretti (International Monetary Fund)
John Rogers (Board of Governors of the Federal Reserve System)

3:40 p.m. Afternoon Break
4:00 p.m. Is the Invisible Hand Discerning or Indiscriminate? Investment and Stock Prices in the Aftermath of Capital Account Liberalizations PDF

Speaker:
Peter Blair Henry (Stanford University)
with Anusha Chari (University of Michigan)

Discussants:
Leonardo Bartolini (Federal Reserve Bank of New York)
Michael Klein (Fletcher School, Tufts University)


5:15 p.m.

Reception - Officer’s Dining Room – 10th floor


6:00 p.m.

Dinner – Officer’s Dining Room – 10th floor

Friday, December 3
8:30 a.m. Continental Breakfast
SESSION 3: Emerging Market Financing and Institutions
Chair: Joseph S. Tracy (Federal Reserve Bank of New York)
9:00 a.m. Capital Flows in a Globalized World: The Role of Policies and Institutions PDF

Speaker:
Sebnem Kalemli-Ozcan (University of Houston)
with Laura Alfaro (Harvard Business School) and Vadym Volovych (University of Houston)

Discussants:
Franklin Allen (Wharton School)
Nouriel Roubini (Stern School, NYU)

10:10 a.m. International Financial Integration and Emerging Market Financing: Then Versus NowPDF

Speaker:
Paolo Mauro (International Monetary Fund)
with Nathan Sussman (Hebrew University of Jerusalem) and Yishay Yafeh (Hebrew University of Jerusalem)

Discussants:
Richard Portes (London Business School)
Alan Taylor (U C Davis)

11:20 a.m. Morning Break
11:35 a.m. Currency Crises, Capital Controls, and Selection Bias PDF

Speaker:
Michael Hutchison (U C Santa Cruz)
with Reuven Glick (Federal Reserve Bank of San Francisco) and
Xueyan Guo (U C Santa Cruz)

Discussants:
Frederic Mishkin (Columbia University)
Carmen Reinhart (University of Maryland)

12:45 p.m. Lunch (informal)
1:15 p.m. Adjourn

Registration Information Word (by invitation only)

Conference Location
Federal Reserve Bank of New York
12th Floor Conference Center
33 Liberty Street
New York, NY

Conference Organizers
Linda Goldberg, Vice President, International Research

> Paolo Pesenti, Research Officer, International Research

Contact
Please address any questions to:

Linda Goldberg
Federal Reserve Bank of New York
International Research
33 Liberty Street
New York, NY 10045
Linda.Goldberg@ny.frb.org
or
Paolo Pesenti
Federal Reserve Bank of New York
International Research
33 Liberty Street
New York, NY 10045
Paolo.Pesenti@ny.frb.org