NYU Stern
Carnegie-Rochester-NYU Conference on Public Policy


"Monetary Policy: An Unprecedented Predicament"
November 14-15, 2014

The Carnegie-Rochester-NYU Conference on Public Policy is now soliciting papers for a conference on "Monetary Policy: An Unprecedented Predicament." This Conference will be held at Carnegie Mellon University on November 14-15, 2014. The papers and comments are slated for publication in the July 2015 issue of the Journal of Monetary Economics.

Monetary policy and fiscal policy are intertwined as never before. Conventional macro models with non-interest bearing bank reserves and a tight relation between nominal income and high-powered money, i.e, a "money multiplier," are now not adequate for current policy discussions. Vastly expanded central bank balance sheets, rising rich-country public debt, and political economy complications call into question standard theoretical approaches to determining the price level and the effectiveness of monetary policy in sustaining price stability going forward.

We invite proposals that employ dynamic monetary and financial theory to address the abovementioned predicament. Monetarist, Keynesian, fiscal theory of the price level, optimal fiscal policy, and political economy approaches are welcome. Quantitative applications to the Euro Area, Japan the United Kingdom, or the United States are preferred, though not essential. Both positive and normative analyses will be considered.

The following topics are among those of interest: 10 the relevance of the central bank balance sheet for managing inflation with monetary policy, 20 monetary policy as "carry trade" - long bonds financed with interest on reserves - its theoretical impact on asset prices, the term premium, interest rates, and economic activity, 3) active management of debt structure as part of optimal fiscal policy and its implications for asset prices, 40 the appropriate level of surplus capital against interest rate risk on the central bank balance sheet, 50 deflation risk and its consequences for economic activity, 6) negative interest on reserves as monetary stimulus, and 70 the effectiveness of forward guidance in the management of long-term interest rates and economic activity.

The editors invite detailed abstracts of no more than two pages describing the proposed research paper. (If a preliminary version of the paper is available, authors may include it with their abstract.) Proposals should be submitted electronically to Sue North, Editorial Assistant for the Journal of Monetary Economics, no later than Monday, April 14, 2014 at north@simon.rochester.edu.

The editors, in collaboration with the Carnegie-Rochester-NYU Advisory Board, will make the final selection of papers to be included in the Conference. Authors will be notified by May 5, 2014 if their paper has been selected. Authors will receive an honorarium of $2500 and be expected to present their paper at the Conference. The papers should represent original research not presented or published elsewhere. Since the papers are intended for publication, authors will not be able to publish or reprint the work elsewhere without the permission of the editors and publisher. Please note that the editors will contact authors only if their paper is accepted.