The International Symposium of the Banque de France
This international event, organized by the Banque de France, brings together a large number of financial experts from the world over. From central bankers to academics, from practitioners and members of financial institutions, to governments and international organizations—all take part in this recurring global symposium.
Investors and market participants are particularly interested in the discussions at this symposium. Here, they can hear vital cues about the planned directions that central bankers have envisaged for their respective economies.
Those invested in US equities through the SPDR S&P 500 ETF Trust (SPY) or the iShares Core S&P 500 ETF (IVV), as well as those invested in European equities through the Vanguard FTSE Europe ETF (VGK), or in India through the WisdomTree India Earnings Fund (EPI), or in Japan through the iShares MSCI Japan ETF (EWJ) should also take cues from experts about any monetary policy action that could have a direct bearing on the stock markets.
The purpose of this year’s symposium, which was held on November 7, was to provide some answers to the open question concerning the future of central banks. Discussions related to this year’s theme—Central Banking: The Way Forward—dealt with three key issues:
- The interaction of monetary and fiscal policy that’s resulted in high public debt in many countries since the Great Recession
- Important changes in financial intermediation that central banks and financial regulators have had to adapt to in the aftermath of the financial crisis
- Spillover and feedback effects of globalization that, while facilitating cross-border flows, have also raised questions about the scope and limits of autonomy in fiscal and monetary policy—not only in smaller, open economies, but also in larger ones
The symposium featured focused presentations and discussions on specific issues related to the future of central banking. There was also a panel discussion of eminent central bankers from across the globe. We’ll look at that panel discussion in the next part of our series.