Tuesday, May 17, 2022, 7:45 PM (Singapore Time)
Contact: By invitation only
Wednesday, May 18, 2022, 8:00 PM (Singapore Time)
The Joint Regional Financing Arrangements (RFAs) research seminar series is held annually and aim to encourage technical discussions on topics relevant for crisis prevention and resolution, which are the core mandates of the RFAs. Initiated in 2017 by the ASEAN+3 Macroeconomic and Research Office (AMRO), European Stability Mechanism (ESM), and the Latin American Reserve Fund (FLAR), the research seminar brings together academics, policy makers, economists from central banks and finance ministries as well as representatives from RFAs, the International Monetary Fund (IMF) and other international financial institutions (IFIs). The past editions have dealt with issues highly relevant to RFAs, such as the effectiveness of crisis-time liquidity provision, early warning systems, and the most recent one, debt and growth in the post-pandemic world.
This year’s 6th edition of RFA Seminar will focus on spillovers from international capital flows, the policy measures to address the contagion effects and existing international frameworks that may contribute to dealing with capital flow volatility. It is co-organized in partnership with the G-20 Indonesia Presidency.
The ongoing pandemic contributes to the global financial market volatility and delayed business re-openings and is clouding the inflation outlook. Amid price pressure persisting more than anticipated, central banks in advanced economies (AEs) have taken steps toward policy normalization, while policymakers in several emerging market economies (EMEs) have continued to tighten monetary policy. The sanctions against Russia and Belarus have put further pressure on price stability, and heightened uncertainty regarding the paths of monetary policy. A sharper-than-expected monetary policy normalization in the AEs could lead to a premature tightening in global financial conditions, with potential implications for interest rates and capital outflows. In this context, understanding capital flows is increasingly crucial for both macroeconomic and financial stability policies.
Extreme swings in capital flows have long been a cause of concern for policymakers because of the risks that they can pose to macroeconomic and financial stability. For EMEs, inflows and outflows of capital can often present major challenges to financial stability, especially if the capital flows exhibit a high level of volatility. Most EMEs are recipients of increasingly large capital inflows amid intensifying financial globalization, namely, direct investment, portfolio investment and bank loans. However, it has also been exposed to sudden stops and reversals in capital flows, with attendant spillover and contagion.
Capital flow management measures (CFMs) are designed to limit capital flows and to reduce systemic financial risks stemming from such flows. Their use and classification and their relationships to macroprudential policy measures (MPMs) to manage volatile capital flows continue to be hotly debated. In support of harnessing the benefits of capital flows while managing the risks to financial and economic stability, the IMF reviewed the Institutional View on capital flows to bring it up to date with advances in theoretical and empirical research as well as the developments in the global economy and policy experiences. The seminar will offer an opportunity to visit the issue from different institutional and geographical perspectives.
Governor, Bank Indonesia, Indonesia G20 Presidency
Managing Director, European Stability Mechanism
JOSÉ DARÍO URIBE
Director General Latin American Reserve Fund
Chief Economist, European Stability Mechanism [Session Chair]
KHOR HOE EE
Chief Economist, ASEAN+3 Macroeconomic Research Office [Session Chair]
Deputy Head of Monetary and Economic Department, Bank for International Settlements [Keynote Speaker]
Deputy Director, Strategy, Policy and Review Department International Monetary Fund [Keynote Speaker]
ZENO RONALD A. ABENOJA
Managing Director, Bangko Sentral ng Pilipinas
Chief Economist, Central Bank of Peru
CARMINE DI NOIA
Director, Directorate for Financial and Enterprise Affairs, Organisation for Economic Co-operation and Development
JOSE ANTONIO OCAMPO
Professor, School of International and Public Affairs Columbia University
Assistant Governor, Bank Negara Malaysia
Deputy Director-General, International Finance Bureau, Korea Ministry of Economy and Finance