The Impact of Extraordinary Monetary Policy on the Financial Sector - December 1–2, 2016

The conference brought together economists, statisticians, finance professionals, and regulators to discuss the impact of the extraordinary monetary policy interventions of central banks during and after the financial crisis on the financial sector.

Central banks in many developed countries adopted a number of extraordinary measures to relieve liquidity strains during the crisis. As the crisis abated, many of these central banks took extraordinary measures to help their economies recover from the Great Recession. In many cases, the postcrisis measures continue (large balance sheets) or have even been expanded (the move from near-zero policy rates to negative rates). Moreover, these measures may interact with a variety of postcrisis regulatory developments, including stricter leverage requirements, minimum liquidity requirements, and increased collateralization of over-the-counter (OTC) derivatives. These measures have had and are continuing to having a variety of consequences, both intended and unintended, for financial markets and institutions. The conference seeks to develop a better understanding of crisis-related actions on the financial system, as central banks are likely to face similar pressures at some point in the future. The conference also aims to improve our understanding of how recent and current extraordinary measures are affecting the financial system.

The Atlanta Fed's Center for Financial Innovation and Stability and Georgia State University's Center for the Economic Analysis of Risk are conference organizers.