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Low for long again? Central bank balance sheets large forever? ​What happened to incentives and market discipline?​

Day 3 Morning

Friday 23 February

Room :

ROOM 1

Speakers

Chair
Ashok Bhatia
Advisor, European Department - International Monetary Fund (IMF)
Public Authorities
Mārtiņš Kazāks
Governor and Member of the Governing Council of the ECB - Bank of Latvia
Madis Müller
Governor - National Bank of Estonia (Eesti Pank)
Yannis Stournaras 
Governor & Member of the Governing Council of the ECB  - Bank of Greece 
Boštjan Vasle
Governor and Member of the Governing Council of the ECB - Bank of Slovenia
Boris Vujčić
Governor - Croatian National Bank
Guillaume-Pierre Wunsch
Governor and Member of the Governing Board of the ECB - National Bank of Belgium
Other stakeholder & experts
Jacques de Larosière
Honorary President - EUROFI
Axel A. Weber
President, Center for Financial Studies - Goethe University Frankfurt

Objectives

The session will not discuss the timing of rate cuts—many others are doing that.
Instead, it will explore some deeper questions in monetary policy. First, is there an implicit assumption now that we are very soon returning to the easy times of low-for-long interest rates? Second, has it already been concluded that central bank balance sheets must remain large forever? The roundtable will seek to encourage a vibrant debate on these issues.

Points of discussion

  1. Are we returning to a world where real interest rates are at zero? What lessons should be drawn from the many years of negative policy rates and easy money?
  2. Is it already decided that central bank balance sheets must remain large forever? What are the tradeoffs of a large structural bond portfolio?