Financial Stability Considerations for Monetary Policy

September 30, 2022

The academic consensus has evolved to recognize that financial vulnerabilities have the potential to adversely affect the real economy and are also an inherent and largely procyclical part of the financial system. The Federal Reserve System organized a conference to garner the insights of researchers and policymakers on how monetary policy affects financial vulnerabilities and in turn how the state of the financial system interacts with the achievement of the maximum employment and price stability goals of monetary policy. The conference was co-led by Federal Reserve Board Vice Chair Lael Brainard and Federal Reserve Bank of New York President John C. Williams, who gave opening and closing remarks. The conference also included a panel of current and former central bank policymakers to explore the themes of the conference, as well as paper presentations with discussants.

watch the event

Session I

Session II

Session III

Session IV

Session V

Session VI


This event was by invitation-only for in-person attendees but was open to the public virtually. All remarks were on-the-record. For Media inquiries, please contact Mariah Measey at mariah.measey@ny.frb.org.


William Bassett, Federal Reserve Board
Rochelle Edge, Federal Reserve Board
Anna Kovner, Federal Reserve Bank of New York

Program Committee

Ozge Akinci, Federal Reserve Bank of New York
Nina Boyarchenko, Federal Reserve Bank of New York
Miguel Faria-e-Castro, Federal Reserve Bank of St. Louis
Giovanni Favara, Federal Reserve Board
José Fillat, Federal Reserve Bank of Boston
Scott Frame, Federal Reserve Bank of Dallas
François Gourio, Federal Reserve Bank of Chicago
Benjamin Lester, Federal Reserve Bank of Philadelphia
Thomas Mertens, Federal Reserve Bank of San Francisco
Edward Prescott, Federal Reserve Bank of Cleveland
Horacio Sapriza, Federal Reserve Bank of Richmond
Andres Schneider, Federal Reserve Board
Rajdeep Sengupta, Federal Reserve Bank of Kansas City
Annette Vissing-Jørgensen, Federal Reserve Board

Event Details

Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045


8:30am Registration and Continental Breakfast
9:00am Welcoming Remarks

Lael Brainard, Vice Chair, Federal Reserve Board of Governors
9:15am Financial Vulnerability and Monetary Policy

Tobias Adrian, International Monetary Fund (Presenter) Presentation
Fernando Duarte, Brown University

Discussant: Moritz Lenel, Princeton University Presentation
10:00am The Financial (In)Stability Real Interest Rate, R**

Ozge Akinci, Federal Reserve Bank of New York (Presenter) Presentation
Gianluca Benigno, Federal Reserve Bank of New York
Marco Del Negro, Federal Reserve Bank of New York
Albert Queralto, Federal Reserve Board of Governors

Discussant: Mark Gertler, New York University Presentation
10:45am Coffee Break
11:15am Policy Panel

Ida Wolden Bache, Norges Bank
Claudia Buch, Bundesbank
Agustín Carstens, Bank for International Settlements
Donald Kohn, Brookings Institute

Moderator: Kristin Forbes, MIT Sloan School of Management
12:30pm Lunch

1:45pm How Does Monetary Policy Affect Household Indebtedness?

Andreas Fagereng, BI Norwegian Business School
Magnus A. H. Gulbrandsen, Norges Bank (Presenter) Presentation
Martin B. Holm, University of Oslo
Gisle J. Natvik, BI Norwegian Business School

Discussant: Stephanie Johnson, Rice University Presentation
2:30pm Refreshment Break

2:45pm Nonbanks, Banks, and Monetary Policy: U.S. Loan-Level Evidence since the 1990s

David Elliott, Bank of England
Ralf R. Meisenzahl, Federal Reserve Bank of Chicago
José-Luis Peydró, Imperial College & Universitat Pompeu Fabra (Presenter) Presentation
Bryce C. Turner, Harvard Business School

Discussant: Christa Bouwman, Mays Business School, Texas A&M University Presentation
3:30pm Leaning Against the Wind: An Empirical Cost-Benefit Analysis

Luis Brandão-Marques, International Monetary Fund
Gaston Gelos, International Monetary Fund (Presenter) Presentation
Machiko Narita, International Monetary Fund
Erlend Nier, International Monetary Fund

Discussant: Matthew Baron, Johnson Graduate School of Management, Cornell University Presentation
4:15pm Closing Remarks

John C. Williams, President, Federal Reserve Bank of New York

Tobias Adrian
Financial Counsellor and Director of the Monetary and Capital Markets Department
International Monetary Fund

Ozge Akinci
Research Economist
Federal Reserve Bank of New York

Ida Wolden Bache
Norges Bank

Matthew Baron
Assistant Professor
Cornell University

Christa H.S. Bouwman
Interim Head & Professor of Finance
Texas A&M University

Lael Brainard
Vice Chair
Board of Governors of the Federal Reserve System

Claudia M. Buch
Vice President

Agustín Carstens
General Manager
Bank for International Settlements

Fernando Duarte
Lecturer in Economics
Brown University

Kristin Forbes
Professor, Global Economics and Management
MIT Sloan School of Management

Gaston Gelos
Assistant Director
International Monetary Fund

Mark Gertler
Professor of Economics
New York University

Magnus A. H. Gulbrandsen
Senior Economist
Norges Bank

Stephanie Johnson
Assistant Professor of Finance
Rice University

Donald Kohn
Senior Fellow - Economic Studies
Brookings Institute

Moritz Lenel
Assistant Professor of Economics
Princeton University

José-Luis Peydró
Professor of Finance
Imperial College Business School

John C. Williams
President and Chief Executive Officer
Federal Reserve Bank of New York


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