2020 Financial Stability Conference: Stress, Contagion, and Transmission
The Federal Reserve Bank of Cleveland and the Office of Financial Research hosted their annual financial stability conference, Financial Stability: Stress, Contagion, and Transmission, which was held virtually on November 19-20, 2020.
COVID-19 has had a substantial impact on economies and financial markets worldwide, though we recognize this impact is secondary to the wide-ranging health and survival issues the virus has engendered. Nevertheless, the pandemic has provided an authentic, severely adverse stress event through which we can glean specific lessons and apply particular remedies. Though the triggering event was different from what had been expected, the response to the 2008–2009 financial crisis created a suite of tools and playbooks for crisis response. Given current events, understanding exactly how these tools were or might have been implemented, along with how effective they have proven, may help illuminate lessons from the market and institutional responses to the pandemic.
Scientific Committee:
Agostino Capponi, Columbia University
Itamar Drechsler, Wharton School of the University of Pennsylvania
Michael Gofman, Simon School of Business at the University of Rochester
Itay Goldstein, Wharton School of the University of Pennsylvania
Anton Korinek, University of Virginia Darden School of Business
Philipp Schnabl, New York University Leonard N. Stern School of Business
Victoria Ivashina, Harvard Business School
November 19, 2020
Welcome | video
8:25-8:30 am
Joseph Haubrich, Senior Economic and Policy Advisor, Federal Reserve Bank of Cleveland
Opening Remarks
8:30-8:40 am
Loretta J. Mester, President and Chief Executive Officer, Federal Reserve Bank of Cleveland
Panel: Macroprudential and Monetary Policy
8:40-9:40 am
Moderator: Andrew Atkeson, Stanley M. Zimmerman Professor of Economics and Finance, University of California, Los Angeles
Panelists
Hugh Carney, Vice President, Capital Policy, American Bankers Association
James Chapman, Deputy Managing Director, Economic and Financial Research, Bank of Canada | presentation
Dorothy DeWitt, Director, Division of Market Oversight, Commodity Futures Trading Commission
Andreas Lehnert, Director of Financial Stability, Board of Governors of the Federal Reserve System
Q&A
Break
9:40-9:50 am
Paper Session: Macroprudential Policy and Monetary Policy | video
9:50-10:50 am
Moderator and Discussant: Philipp Schnabl, Martin J. Gruber Professor in Asset Management, Professor of Finance, and Sidney Homer Director of the Salomon Center for the Study of Financial Institutions, New York University Leonard N. Stern School of Business | presentation
Why So Negative? The Effect of Monetary Policy on Bank Credit Supply Across the Euro Area | paper | presentation
Florian Heider, Advisor, Financial Research Division, European Central Bank
Capital Requirements and Banks’ Behavior: Evidence from Bank Stress Tests | paper | appendix | presentation
Mehrnoush Shahhosseini, Assistant Professor of Finance, Masagung Graduate School of Management at University of San Francisco
Q&A
Break
10:50-11:00 am
Panel: Financial Market Frictions + Liquidity | video
11:00 am-12:00 pm
Moderator: Amy Edwards, Assistant Director Office of Markets, US Securities and Exchange Commission
Panelists:
Viral Acharya, C.V. Starr Professor of Economics, Department of Finance, New York University Leonard N. Stern School of Business | presentation
Darrell Duffie, Adams Distinguished Professor of Management and Professor of Finance, Stanford Graduate School of Business
Ben Golub, Chief Risk Officer, BlackRock | presentation
Isabel Schnabel, Member of the Executive Board, European Central Bank | presentation
Antoinette Schoar, Stewart C. Myers-Horn Family Professor of Finance, MIT Sloan School of Management
Q&A
Break
12:00-12:35 pm
Keynote Address | video
12:35-1:10 pm
Introduction: Loretta J. Mester
Governor Michelle W. Bowman, Board of Governors of the Federal Reserve System
November 20, 2020
Welcome | video
8:25-8:30 am
Dasol Kim, Senior Economist, Office of Financial Research
Opening Remarks
8:30-8:40 am
Dino Falschetti, Director, Office of Financial Research
Paper Session: Financial Market Frictions + Liquidity
8:40-9:40 am
Moderator and Discussant: Victoria Ivashina, Lovett-Learned Professor of Finance, Harvard Business School | presentation
Mutual Fund Liquidity Transformation and Reverse Flight to Liquidity | paper | presentation
Kairong Xiao, Assistant Professor of Finance, Columbia Business School
Yiming Ma, Assistant Professor of Finance, Columbia Business School
Yao Zeng, Assistant Professor of Finance, Wharton School of the University of Pennsylvania
Anatomy of a Liquidity Crisis: Corporate Bonds in the COVID-19 Crisis | paper | presentation
Xing (Alex) Zhou, Principal Economist, Board of Governors of the Federal Reserve System
Maureen O’Hara, Robert W. Purcell Professor of Finance, Cornell University
Q&A
Break
9:40-9:50 am
Panel: Networks and Contagion | video
9:50-10:50 am
Moderator: H. Peyton Young, Centennial Professor, London School of Economics
Panelists:
Joshua M. Epstein, Professor of Epidemiology, New York University School of Global Public Health
Paul Glasserman, Jack R. Anderson Professor of Business, Columbia Business School
Suzanne Sprague, Managing Director, Credit & Liquidity Risk, Risk Policy, & Banking, CME Group
Q&A
Break
10:50-11:00 am
Paper Session: Networks and Contagion | video
11:00 am-12:00 pm
Moderator and Discussant: Michael Gofman, Assistant Professor of Finance, Simon Business School at the University of Rochester | presentation | presentation
Pirates Without Borders: The Propagation of Cyberattacks through Firms’ Supply Chains | paper | presentation
Matteo Crosignani, Economist, Federal Reserve Bank of New York
André F. Silva, Economist, Board of Governors of the Federal Reserve System
Marco Macchiavelli, Senior Economist, Board of Governors of the Federal Reserve System
Endogenous Risk-Exposure and Systemic Instability | paper | presentation
Chong Shu, PhD Candidate, USC Marshall School of Business
Q&A
Break
12:00-12:10 pm
Keynote Address | video
12:10-1:10 pm
Introduction: Dasol Kim, Senior Economist, Office of Financial Research
Markus K. Brunnermeier, Edwards S. Sanford Professor of Economics, Director of the Bendheim Center for Finance, Princeton University | presentation