Lille-Reading Workshop

1st Lille-Reading Workshop on International Finance

The 1st Lille-Reading Workshop on International Finance, with a focus theme this year on “Recent Trends in International Reserves: Theory and Evidence”, was held online at the University of Reading (UK) on 4-5 November 2021. The workshop was jointly organised by Lille Economie Management (LEM-CNRS) – University of Lille (France), the Economic Analysis Research Group (EARG) – University of Reading (UK), the Money, Macro and Finance Society (MMFS, UK) and the European Research Group (GdRE) in Money, Banking and Finance (France/EU). More background about the aims and scope of the workshop is provided on its website, where the programme and video recordings are accessible too.

Following the workshop, a special issue, or section, of Open Economies Review will be published by the end of 2022, selecting papers presented at the workshop as well as additionally submitted papers on the theme of focus of the workshop.

Call for Papers

Open Economies Review

Special Issue or Section on

“Recent Trends in International Reserves: Theory and Evidence”

Guest Co-Editor: Alexander Mihailov

Editor-in-Chief: George Tavlas

We solicit theoretical as well as empirical or computational papers to potentially be included in this special issue, or section.

Please submit your completed paper by e-mail as pdf file attachment to Alexander Mihailov (University of Reading) at [email protected].

The deadline for submission is 31 January 2022. Decisions, after a standard – but accelerated – refereeing process, will be circulated by 15 April 2022. Invited revisions will be due by 30 June 2022.

Link to the workshop website with the call for papers (in a more detailed pdf version) is here.

The workshop, consisting of three sessions and a keynote talk (see the respective links below), gathered together for fruitful discussions most of the leading researchers currently in the field of international macroeconomics and finance from both academia and central banks. It evolved in a stimulating and constructive atmosphere and addressed important research questions of our time, such as the recent trends in international reserve accumulation, international capital flows, the role of the dollar, the euro and other major world currencies in intermediating trade in goods, services and assets and how the COVID-19 pandemic has affected these issues and the related policies.

4-5 November 2021, University of Reading (online)
In partnership with Université de Lille and Money, Macro and Finance Society, UK

Local organiser: Alexander Mihailov,
Associate Professor
Director of the Economic Analysis Research Group (EARG)
Department of Economics
University of Reading

Links to the video recordings by session, with detail on the papers discussed

Session 1: International Reserves, Sudden Stops, and Uncertainty

Thursday, 4 November 2021

13:45-13:50  Welcome: Robert van de Noort
(University of Reading), Vice Chancellor

13:50-13:55   Welcome: Uma Kambhampati
(University of Reading), Head of the School of Politics, Economics and International Relations (SPEIR)

13:55-14:00  Welcome: Alexander Mihailov (University of Reading), Director of the Economic Analysis Research Group (EARG) and workshop co-founder and local organiser

14:00-16:15  Session 1: International Reserves, Sudden Stops, and Uncertainty

Chair: Miguel Leon-Ledesma
(University of Kent and CEPR)

14:00-14:45 “Currency Compositions of International Reserves and the Euro Crisis”

Presenters: Falk Hendrik Laser (Goethe University Frankfurt and Technische Universität Darmstadt)
Jan Weidner (German Federal Ministry for Economic Affairs and Energy)

Discussant: Jean-Christophe Poutineau (Université de Rennes 1)

14:45-15:30 “Sudden Stops, Productivity and the Optimal Level of International Reserves for Small Open Economies”

paper with Harun Nasir (Zonguldak University)

Presenter: Alexander Mihailov (University of Reading)

Discussant: Anna Lipinska (Federal Reserve Board)

15:30-16:15 “Interest Rate Uncertainty as a Policy Tool”

paper with Fabio Ghironi (University of Washington, CEPR, EABCN,
and NBER)

Presenter: Galip Kemal Ozhan (Bank of Canada)

Discussant: Fabien Tripier (Université d’Evry)

Keynote by Gianluca Benigno: The Global Financial Resource Curse

Thursday, 4 November 2021

16:30-17:30 Keynote Talk: “The Global Financial Resource Curse”

Speaker: Gianluca Benigno (Assistant Vice President and Function Head, International Research Function, Federal Reserve Bank of New York, and London School of Economics and Political Science)

Chair: Tommaso Monacelli (Università Bocconi, IGIER, and CEPR)

Session 2: International Capital Flows, Global Risk, and The Dollar

Friday, 5 November 2021

10:00-13:00 Session 2: International Capital Flows, Global Risk, and the Dollar

Chair: Cedric Tille (Graduate Institute Geneva and CEPR)

10:00-10:45 “How Does International Capital Flow?”

paper with Phurichai Rungcharoenkitkul (Bank for International
Settlements) and Andrej Sokol (European Central Bank, Bank of
England and Centre for Macroeconomics)

Presenter: Michael Kumhof (Bank of England, CEPR and Centre for Macroeconomics)

Discussant: Jean-Bernard Chatelain (Université Paris 1 – Sorbonne)

 

10:45-11:30 “Global Risk and the Dollar”

paper with Gernot Müller (University of Tübingen and CEPR)
and Ben Schumann (Free University of Berlin)

Presenter: Georgios Georgiadis (European Central Bank)

Discussant: Etienne Farvaque (Université de Lille)

11:30-12:15 “Dash for Dollars”

paper with Fernando Eguren-Martin (Bank of England
and Centre for Macroeconomics)

Presenter: Ambrogio Cesa-Bianchi (Bank of England, CEPR, and
Centre for Macroeconomics)

Discussant: Jagjit Chadha (National Institute of Economic and Social Research)

12:15-13:00 “Dilemma and Global Financial Cycle: Evidence from
Capital Account Liberalization Episodes”

Presenter: Xiang Li, Halle Institute for Economic Research (IWH)

Discussant: Sophie Brana (Université de Bordeaux), read by Alexander Mihailov

Session 3: Monetary Union, Fiscal Policy, and International Spillovers

14:00-16:15 Session 3: Monetary Union, Fiscal Policy, and International Spillovers

Chair: Antonio Afonso (ISEG–Lisbon School of Economics & Management)

14:00-14:45 “Exits and Bailouts in a Monetary Union”

Presenter: Michal Kobielarz (KU Leuven)

Discussant: Hubert Kempf (ENS Paris-Saclay and HSE Moscow)

14:45-15:30 “Fiscal Policy, International Spillovers, and Endogenous Productivity”

paper with Ludger Linnemann (Technische Universität Dortmund)

Presenter: Mathias Klein (Sveriges Riksbank)

Discussant: Gulcin Ozkan (King’s College London)

15:30-16:15 “What Goes Around Comes Around: How Large Are
Spillbacks from US Monetary Policy?”

paper with Georgios Georgiadis (European Central Bank)
and Ben Schumann (Free University of Berlin)

Presenter: Max Breitenlechner (University of Innsbruck)

Discussant: Balazs Egert (OECD, Paris), read by Alexander Mihailov

16:15-16:20 Closing thanks: Etienne Farvaque for Florence Huart (both Université de Lille), workshop co-founder and co-organiser