Conferences

Second Annual Conference of the Central Bank of Chile

Banking, Financial Integration, and Macroeconomic Stability

Santiago, Chile, September 3-4, 1998

Motivation: East Asia’s ongoing economic crisis has highlighted the role of a sound banking system in growth and development. Despite showing a stable macroeconomic environment for many years ¾ as reflected in low inflation rates, small fiscal deficits, and apparently sustainable current account deficits¾ the economies of East Asia are suffering today from the consequences of poorly regulated and supervised financial systems. Similar in many respects to the Chilean experience of the early 1980s, the current crisis in East Asia vividly illustrates that a stable macroeconomic environment is not sufficient for achieving high and sustained growth. Macroeconomic stability needs to be complemented by the development of a strong financial sector pursuing sound lending practices. The latter can be achieved only if the financial sector is well regulated and closely monitored and supervised by both market participants and official agencies.

Conference Objective: The purpose of the conference is to present new analytical and empirical research on selective aspects of banking, financial integration, and macroeconomic stability. The papers should contribute to a better understanding of the links between the financial and real sectors, and the design of policies and institutional arrangements that minimize perverse interactions and contagion effects between both sectors. The views of private-sector executives and representatives of central banks and international financial institutions, in the light of their experience in dealing with the consequences of the Asian crisis, will be presented at the Conference round tables. The focus of the empirical evidence and policy experiences is international; however some country emphasis is on the case of Chile.

The Annual Conference celebrates the Central Bank´s anniversary. The Conference is targeted at an audience comprised by private-sector executives and analysts, policy makers, academics, and representatives of international financial institutions.

Program

Venue: Salón Embajadores, Hotel Carrera, in Santiagoe.