The Role of Liquidity in the Financial System

Posted On November 22, 2017

November 19, 2015 - November 20, 2015

Federal Reserve Bank of Atlanta

Conference Website  | Draft Agenda 

The Center for Financial Innovation and Stability (Federal Reserve Bank of Atlanta) and the Center for the Economic Analysis of Risk (Georgia State University) are organizing the conference "The Role of Liquidity in the Financial System," to be held at the Federal Reserve Bank of Atlanta on November 19–20, 2015. The aim of the conference is to bring together economists, statisticians, finance professionals, and regulators in order to discuss the measurement, importance, and regulation of liquidity in financial intermediation and markets.

A number of regulatory initiatives have occurred since the crisis in an attempt to make specific institutions and markets safer and more liquid. These changes include new regulations intended to make banks and money market funds less susceptible to runs, reduce credit risk in the over-the-counter derivatives market, and reduce banks' vulnerability to risks arising from their activity in financial markets (such as stricter capital requirements and the Volcker rule). These changes have been accompanied by central banks engaging in large-scale securities purchases in an effort to increase risk taking and economic activity. As a result, returns on safe, liquid assets are at historically low rates, and some question whether many risky asset prices are reaching bubble territory. This conference seeks to develop a better understanding of the motivation for and especially the consequences of these regulatory policies designed to reduce risk taking and central bank policies intended in part to increase risk taking.