Given the late stage of economic expansion and a looming slowdown, financial markets are questioning whether the policy instruments available to central banks are sufficient to help the global economy through the next recession. This and the political pressures of populism and trade wars have put central banks in the cross-hairs of political discourse, negatively affecting their independence and further reducing their policy options. The CFA Society VBA Netherlands Annual Dinner 2020 will discuss the important role central banks have had in the past, and question their future. Are they still effective engineers of economic expansion? Or are their options too limited to make any difference at all. And how will this all affect investors and their capabilities to achieve a reasonable return?
With interest rates at historical lows, booming central bank balance sheets and “whatever it takes” rhetoric wearing off, it remains to be seen what monetary tools central banks have left and which new ones they can come up with. Even if they can come up with new tools, their effectiveness on getting capital to flow where it is needed, will be questioned. While central bankers point to fiscal policy to fill the gaps, this is also where institutional investors come into play as they can more effectively direct their capital to where is needed.
Besides limited monetary tools, central banks are also facing difficult political times. President Trump is leading the troops in criticizing the US Federal Reserve, and many (government officials, investors, economists and others) are following. Trump even openly criticized the chairman of the Federal Reserve for “not doing a good job”. Also central banks are criticizing each other for running too-loose monetary policies in order to make their currencies more attractive. This discourse causes breaches in the trust in, and independence of, central banks across the world.
The dwindling options for monetary policy solutions and the breach of independence not only limits central banks’ capabilities and redefines the way they operate, but draws into question their raison d'être. During the Annual Dinner we will look at the remaining fire power of central banks, how this might be deployed to ensure steady economic growth and how investors can help.
Our keynote speakers will lead us through a thorough and thoughtful discussion on the future of central banks and monetary policy. Vitor Constâncio, former Vice President of the European Central Bank and former Governor of the Banco de Portugal, is uniquely positioned to share his views from the seat of a central banker and policy maker at state and European level. Stephanie Kelton, Professor of Economics and Public Policy at Stony Brook University and one of the most important economists influencing the policy debate today, will provide an alternative sound as she will guide us through "Modern Monetary Theory", the new approach to economics that is taking the world by storm. The discussion will be expertly moderated by Sandra Phlippen, Chief Economist at ABN Amro, who will also add a macroeconomic perspective.
Over dinner you are invited to discuss your views on these topics with over 200 like-minded investment professionals while enjoying the excellent food and elegant atmosphere of the Hotel Okura in Amsterdam.
We look forward to greeting you there!
Everyone is welcome. Registration is required. Fees include a 3-course dinner and drinks.
Stephanie Kelton is a leading authority on "Modern Monetary Theory", a new approach to economics that is taking the world by storm. She is one of the most important economists influencing the policy debate today. Her new book, The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy (June 2020), shows how to break free of the myths and misunderstandings about money and the role of taxes, debt and deficits that have hamstrung policymakers around the world.
Sandra Phlippen is an economist and sociologist and is Chief Economist of Group Economics of ABN AMRO since 1 December 2019. Sandra is also affiliated with the Erasmus School of Economics as an assistant professor. From September 2016 to March 2018 she was the economics editor at Algemeen Dagblad. Previously, she was editor-in-chief of ESB, the bi-weekly journal of economics and statististics. Sandra also was board member of the Genootschap van Hoofdredacteuren, guest columnist for de Volkskrant, columnist for Z24.nl and board member of the Dutch Royal Economic Society. Sandra is active in the social domain and regular guest in programs such as Buitenhof, Jinek, RTL Late Night and Pauw.