Central Bank of Iceland – International Monetary Fund
The Challenges of Globalisation for Small Open Economies with Independent Currencies
In Reykjavík, Iceland May 31 and June 1 2007
Venue: Radisson SAS (Hótel Saga)
Day 1. Thursday 31 May
Introduction
08:30-08:50 Registration and coffee
08:50-09:05 Welcome address: Davíð Oddsson, Chairman of the Board of Governors, Central Bank of Iceland
Session 1. Challenges of globalisation to monetary policy in small open economies
Chair: Ingimundur Friðriksson
09:05-9:20 Arnór Sighvatsson: Paddling in an ocean of global money: The problems of running independent monetary policy at times of large demand shock and ample global liquidity Other Documents
09:25-9:40 Mark A. Wynne: How have small open economies responded to the challenge of globalization? Other Documents
09:45-10:00 Audun Grönn: Optimal monetary policy in a small open economy
10:05-10:20 Alex Bowen: Globalisation, import prices and inflation targeting
10:25- 10:45 Coffee break
Session 2. Monetary policy regime, economic structure and performance
Chair: John Driffill
10:45-11:00 Anders Möller Christiansen: Monetary policy regime and macroeconomic performance
11:05-11:20 Klaus Schmidt-Hebbel: Does inflation targeting make a difference?
11:25-11:40 Thórarinn G. Pétursson: Is inflation control more difficult in very small open economies? Other Documents
11:45-12:00 Stephen G. Cecchetti: Housing Booms, Inflation Measurement, and Monetary Policy Other Documents
12:05-12:20 Ásgeir Jónsson: Basel II and monetary policy in small open economies
12:30-14:00 Lunch break
Session 3. Economic policy and globalisation
Chair: Harri Hasko
14:00-14:30 Ben Hunt: Will globalization speed the Icelandic rollercoaster or will the right policy frameworks smooth the ride?
14:35-14:50 Thorsteinn Thorgeirsson: Fiscal policy in Iceland and the challenges of globalisation
14:55-15:10 Torben Andersen: Fiscal policy and globalization
15:15-15:30 Gylfi Arnbjörnsson: Flexibility in the wage formation in Iceland and its impact on monetary policy regime
15:35-15:55 Coffee break
Session 4. External imbalances and carry trade
Chair: Li Lian Ong
16:00-16:15 Vilhjálmur Egilsson: Rich or bankrupt? Rich or bankrupt? Is the current account deficit in Iceland overstated?
16:20-16:35 Beat Siegenthaler: Abundant Global Liquidity and the Chase for High-Yielding Currencies
16:40-16:55 Thorvardur Tjörvi Ólafsson: Carry trade and monetary policy in a very small open economy: The Icelandic Saga
Day 2. Friday 1 June
09:00-09:15 Coffee
Session 5. Summary Session
09:15-10:45 Li Lian Ong: Summary of the main findings
10:45-11:00 General Discussion
11:00-11:15 Coffee Break
Session 6. Roundtable discussion
11:15-12:45 The challenges of globalisation for small open economies with independent currencies
Moderator: Tony Annett
Participants: Alex Bowen, Anders Möller Christensen, Arnór Sighvatsson, Ásgeir Jónsson, Audun Grønn, Beat Siegenthaler, Ben Hunt, Gylfi Arnbjörnsson, Harri Hasko, Wynne, John Driffill, Klaus Schmith-Hebbel, Sephen G. Cecchetti, Torben Andersen, Thórarinn G. Pétursson, Thorvardur Tjörvi Ólafsson, Thorsteinn Thorgeirsson, Vilhjálmur Egilsson
12:45- Lunch
Social Programme
Thursday May 31
17:00-18:00 Cocktail by the invitation of the International Monetary Fund
19:30- Dinner (by invitation only)
Friday June 1
15:00- Excursion