The financial crisis has demonstrated that turmoil in OTC derivative markets can exacerbate finan... more The financial crisis has demonstrated that turmoil in OTC derivative markets can exacerbate financial distress. One of the challenges policymakers currently face, is to mitigate the risks these markets pose to the financial system. Inducing a shift towards more central clearing is an important step in the right direction as it tempers counterparty risk and increases transparency. However, this will only be part of the solution as risk management systems of Central Counterparties (CCPs) are not necessarily equipped to clear all types of derivative contracts. In addition, central clearing concentrates risk and may actually increase systemic risk. By implication, it is crucial that CCPs have robust risk management systems in place. Furthermore, enhancing the safety and transparency of bilateral clearing also merits attention as a certain share of OTC derivative trades will remain bilaterally cleared. Given the international character of OTC derivative markets, coordination between nati...
I am very pleased to be here in New York this morning to talk about risk management in the contex... more I am very pleased to be here in New York this morning to talk about risk management in the context of a rapidly changing financial environment. Many would argue that the greatest challenges for risk managers and supervisors arise during economic downturns and periods of financial stress. However, current benign and favourable conditions can present other challenges. We are facing a period of rapid innovation in financial markets, growing competition, and fading history that is relevant to how stress could play out in the future.
This paper considers the position of national central banks within the ESCB. The funda-mental fra... more This paper considers the position of national central banks within the ESCB. The funda-mental framework underlying the ESCB is that of a system of central banks in which component institutions are individually and collectively responsible for carrying out vari-ous tasks. Within this framework, we evaluate the current division of labour between the ECB and NCBs using the concept of efficiency (which subsumes cost- consciousness as well as effectiveness), along with that of subsidiarity. In contrast to most of the existing literature, the focus is not exclusively on monetary policy, but takes into account a broader array of tasks performed by central banks. Taking a long-run perspective, it is ar-gued that while some tasks are likely to be centralised, fundamental changes in the role of NCBs in the ESCB are linked to further political integration within Europe and the devel- opment of supranational institutions in other policy areas.
1. I am pleased to be joining you today and to be speaking to so many microfinance experts. Befor... more 1. I am pleased to be joining you today and to be speaking to so many microfinance experts. Before starting I would like to commend the conference organisers for putting together such a comprehensive programme on this important topic. Microfinance is becoming ever more relevant, and there can therefore be no doubt that we need to keep it on our agendas. Today, I want to touch upon two issues. I will start with the significant and increasing role of microfinance to combat poverty in the world. This role cannot be called “micro” anymore. Then, I will discuss some supervisory issues that follow from the microfinance concept.
Since 2009, European central bankers have supported some reforms, in order to draw roadmaps to ge... more Since 2009, European central bankers have supported some reforms, in order to draw roadmaps to get out of the euro debt crisis. This paper tests whether the educational and professional background of European central bankers matter for the type of reforms each of them advocated. Through a textual analysis of public speeches delivered by the European central bankers, we draw a cognitive map for each of them and, thus, of the reforms they propose as ways out of the euro debt crisis. Our results show that their occupational background is an important determinant of their respective economic reform proposals.
Part 1 Six Tinbergen lectures on economic policy, A. Knoester and A.H.E.M. Wellink: on macroecono... more Part 1 Six Tinbergen lectures on economic policy, A. Knoester and A.H.E.M. Wellink: on macroeconometrics, profitability and macroeconomic policy on privatization, economic growth and monetary policy. Part 2 Tinbergen and the Royal Netherlands Economic Association, A. Knoester and A.H.E.M. Wellink: the Royal Netherlands Economic Association Tinbergen's 1936 address to the Royal Netherlands Economic Association - the world's first empirical macroeconomic model reactions to Tinbergen's model at the 1936 annual meeting of the Royal Netherlands Economic Association Tinbergen's four other addresses to the Royal Netherlands Economic Association Tinbergen's 1936 model. Part 3 Tinbergen's work-change and continuity, J. Kol and P. de Wolff: areas of Tinbergen's work - change characteristics of Tinbergen's work - continuity concluding remarks. Part 4 Carrying forward the Tinbergen initiative in macroeconometrics, L.R. Klein. Part 5 Profitability and factor demands under uncertainty, E. Malinvaud: an overview the production function the demand function optimal behaviour comparative statics - the kinked demand curve comparative static - the linear demand curve concluding comments. Part 6 On the theory of macroeconomic policy, J. Tobin: Jan Tinbergen and the theory of policy applications in macroeconomics uncertainty about the effects of instruments pitfalls in policy exploitations of empirical regularities relations between qualitative and quantitative policies what can economists say about policy objectives? concluding remarks. Part 7 The principles of privatization in eastern Europe, J. Kornai: values the transformation's evolutionary nature and the role of the state types of owners domestic and foreign ownership the pace of privatization. Part 8 Policies for economic growth, R.M. Solow. Part 9 The recent failure of US monetary policy, M. Feldstein: targets for nominal GDP and the money stock why the Fed was not aggressive enough - managing short-term interest rates the Fed's lack of direct control of M2 the new bank requirements concluding thoughts.
Eight years after its establishment, it is sometimes forgotten what a monumental achievement Econ... more Eight years after its establishment, it is sometimes forgotten what a monumental achievement Economic and Monetary Union actually is. In the early nineties, many people believed it would never happen. Others speculated that if it were to happen, it would soon fall apart. These doomsayers were wrong. Monetary Union happened and it happened smoothly, bringing huge benefits to the people who share the euro. With this in mind, I will today resist the temptation to predict the future of Monetary Union. Instead, I will touch upon the benefits of having the Monetary Union and the key challenges it still faces. By taking up these challenges, I am positive its future can be shaped into a more prosperous one.
This paper discusses briefly how to measure the sensitivity of a personal income tax to changes i... more This paper discusses briefly how to measure the sensitivity of a personal income tax to changes in income and the distribution of income. The method outlined seems to be rather flexible and broad enough to be used on very different tax schedules. For the Netherlands, the "theoretical" income tax elasticity is found to be 1.99; that is, a 10% increase of total income will increase revenue by 19.9%, provided that the distribution remains unaltered during the income-changes. The "actual" income elasticity is lower (about 1.76) because of changes in the income distribution and in the number of taxpayers.
This paper considers the position of national central banks within the ESCB. The fundamental fram... more This paper considers the position of national central banks within the ESCB. The fundamental framework underlying the ESCB is that of a system of central banks in which component institutions are individually and collectively responsible for carrying out various tasks. Within this framework, we evaluate the current division of labour between the ECB and NCBs using the concept of efficiency
The financial crisis has demonstrated that turmoil in OTC derivative markets can exacerbate finan... more The financial crisis has demonstrated that turmoil in OTC derivative markets can exacerbate financial distress. One of the challenges policymakers currently face, is to mitigate the risks these markets pose to the financial system. Inducing a shift towards more central clearing is an important step in the right direction as it tempers counterparty risk and increases transparency. However, this will only be part of the solution as risk management systems of Central Counterparties (CCPs) are not necessarily equipped to clear all types of derivative contracts. In addition, central clearing concentrates risk and may actually increase systemic risk. By implication, it is crucial that CCPs have robust risk management systems in place. Furthermore, enhancing the safety and transparency of bilateral clearing also merits attention as a certain share of OTC derivative trades will remain bilaterally cleared. Given the international character of OTC derivative markets, coordination between nati...
I am very pleased to be here in New York this morning to talk about risk management in the contex... more I am very pleased to be here in New York this morning to talk about risk management in the context of a rapidly changing financial environment. Many would argue that the greatest challenges for risk managers and supervisors arise during economic downturns and periods of financial stress. However, current benign and favourable conditions can present other challenges. We are facing a period of rapid innovation in financial markets, growing competition, and fading history that is relevant to how stress could play out in the future.
This paper considers the position of national central banks within the ESCB. The funda-mental fra... more This paper considers the position of national central banks within the ESCB. The funda-mental framework underlying the ESCB is that of a system of central banks in which component institutions are individually and collectively responsible for carrying out vari-ous tasks. Within this framework, we evaluate the current division of labour between the ECB and NCBs using the concept of efficiency (which subsumes cost- consciousness as well as effectiveness), along with that of subsidiarity. In contrast to most of the existing literature, the focus is not exclusively on monetary policy, but takes into account a broader array of tasks performed by central banks. Taking a long-run perspective, it is ar-gued that while some tasks are likely to be centralised, fundamental changes in the role of NCBs in the ESCB are linked to further political integration within Europe and the devel- opment of supranational institutions in other policy areas.
1. I am pleased to be joining you today and to be speaking to so many microfinance experts. Befor... more 1. I am pleased to be joining you today and to be speaking to so many microfinance experts. Before starting I would like to commend the conference organisers for putting together such a comprehensive programme on this important topic. Microfinance is becoming ever more relevant, and there can therefore be no doubt that we need to keep it on our agendas. Today, I want to touch upon two issues. I will start with the significant and increasing role of microfinance to combat poverty in the world. This role cannot be called “micro” anymore. Then, I will discuss some supervisory issues that follow from the microfinance concept.
Since 2009, European central bankers have supported some reforms, in order to draw roadmaps to ge... more Since 2009, European central bankers have supported some reforms, in order to draw roadmaps to get out of the euro debt crisis. This paper tests whether the educational and professional background of European central bankers matter for the type of reforms each of them advocated. Through a textual analysis of public speeches delivered by the European central bankers, we draw a cognitive map for each of them and, thus, of the reforms they propose as ways out of the euro debt crisis. Our results show that their occupational background is an important determinant of their respective economic reform proposals.
Part 1 Six Tinbergen lectures on economic policy, A. Knoester and A.H.E.M. Wellink: on macroecono... more Part 1 Six Tinbergen lectures on economic policy, A. Knoester and A.H.E.M. Wellink: on macroeconometrics, profitability and macroeconomic policy on privatization, economic growth and monetary policy. Part 2 Tinbergen and the Royal Netherlands Economic Association, A. Knoester and A.H.E.M. Wellink: the Royal Netherlands Economic Association Tinbergen's 1936 address to the Royal Netherlands Economic Association - the world's first empirical macroeconomic model reactions to Tinbergen's model at the 1936 annual meeting of the Royal Netherlands Economic Association Tinbergen's four other addresses to the Royal Netherlands Economic Association Tinbergen's 1936 model. Part 3 Tinbergen's work-change and continuity, J. Kol and P. de Wolff: areas of Tinbergen's work - change characteristics of Tinbergen's work - continuity concluding remarks. Part 4 Carrying forward the Tinbergen initiative in macroeconometrics, L.R. Klein. Part 5 Profitability and factor demands under uncertainty, E. Malinvaud: an overview the production function the demand function optimal behaviour comparative statics - the kinked demand curve comparative static - the linear demand curve concluding comments. Part 6 On the theory of macroeconomic policy, J. Tobin: Jan Tinbergen and the theory of policy applications in macroeconomics uncertainty about the effects of instruments pitfalls in policy exploitations of empirical regularities relations between qualitative and quantitative policies what can economists say about policy objectives? concluding remarks. Part 7 The principles of privatization in eastern Europe, J. Kornai: values the transformation's evolutionary nature and the role of the state types of owners domestic and foreign ownership the pace of privatization. Part 8 Policies for economic growth, R.M. Solow. Part 9 The recent failure of US monetary policy, M. Feldstein: targets for nominal GDP and the money stock why the Fed was not aggressive enough - managing short-term interest rates the Fed's lack of direct control of M2 the new bank requirements concluding thoughts.
Eight years after its establishment, it is sometimes forgotten what a monumental achievement Econ... more Eight years after its establishment, it is sometimes forgotten what a monumental achievement Economic and Monetary Union actually is. In the early nineties, many people believed it would never happen. Others speculated that if it were to happen, it would soon fall apart. These doomsayers were wrong. Monetary Union happened and it happened smoothly, bringing huge benefits to the people who share the euro. With this in mind, I will today resist the temptation to predict the future of Monetary Union. Instead, I will touch upon the benefits of having the Monetary Union and the key challenges it still faces. By taking up these challenges, I am positive its future can be shaped into a more prosperous one.
This paper discusses briefly how to measure the sensitivity of a personal income tax to changes i... more This paper discusses briefly how to measure the sensitivity of a personal income tax to changes in income and the distribution of income. The method outlined seems to be rather flexible and broad enough to be used on very different tax schedules. For the Netherlands, the "theoretical" income tax elasticity is found to be 1.99; that is, a 10% increase of total income will increase revenue by 19.9%, provided that the distribution remains unaltered during the income-changes. The "actual" income elasticity is lower (about 1.76) because of changes in the income distribution and in the number of taxpayers.
This paper considers the position of national central banks within the ESCB. The fundamental fram... more This paper considers the position of national central banks within the ESCB. The fundamental framework underlying the ESCB is that of a system of central banks in which component institutions are individually and collectively responsible for carrying out various tasks. Within this framework, we evaluate the current division of labour between the ECB and NCBs using the concept of efficiency
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