Ideas for Developing Asia and the Pacific

Call for Papers: The Implications of Ultra-Low and Negative Interest Rates for Asia

ADBI 19th Annual Conference: The Implications of Ultra-Low and Negative Interest Rates for Asia
ADBI, Tokyo, Japan
1-2 December 2016

For the last decade, the world economy has gone through many momentous occasions such as the global financial crisis of 2008, the European debt crisis, and advanced economies’ implementation of unconventional monetary policies. The possibility of another global economic slowdown is an ongoing concern. Almost 20 years since the Asian financial crisis, Asia is facing a new challenge as advanced economies implement unprecedented ultra-low interest rate policies (ULIRP) and negative interest rate policies (NIRPs) to jumpstart moribund economies and avoid potential deflation. ULIRPs have given rise to concerns over financial stability and international capital flows. NIRPs’ efficacy in lifting growth and inflation remains unknown. With the longer ends of yield curves plunging into negative territory in several advanced economies, and some reports of damage to banks’ balance sheets, unease is rising over another round of global financial turmoil. A range of unintended consequences of NIRPs is likely, including hoarding of cash, housing bubbles, and deterioration of banks’ balance sheets. It has long been argued that asset prices in Asian financial markets are subject more to monetary policies of advanced economies than their own policies and fundamentals. Consequently, Asia may be affected disproportionately by volatile swings in currencies, international capital flows, and increasing external debt levels.

ADBI invites the submission of theoretical and empirical papers on the implications of ultra-low and negative interest rates for Asia. We are looking for original unpublished research related to, but not limited to, the following topics:

  1. Implication of an extremely low- or negative-yield environment for risk-taking behaviors in Asia and the possibility of financial market dislocations
  2. The side effects of ultra-low or negative interest rates on Asia in several aspects, such as
    • Financial markets and real economies
    • Banking behavior
    • International reserve holding
    • Current account balance
  3. The challenge of implementing monetary policies, exchange rate policies and macro prudential policies in a ULIRP/NIRP environment
  4. International policy coordination in Asia under ULIRP/NIRP

ADBI will cover travel and accommodation costs of one author per paper. Accepted papers will be considered for the first 2018 special issue of Pacific Economic Review Journal.

Guest editors:

  • Joshua Aizenman (University of Southern California, United States)
  • Yin-Wong Cheung (City University; Hong Kong, China)

The Asian Development Bank Institute (ADBI) Annual Conference brings together high-level speakers and top policy makers. Confirmed participants are listed below:

Keynote speakers:

  • Takehiko Nakao (Asian Development Bank)
  • Narayana R. Kocherlakota (Professor of Economics, University of Rochester; Minneapolis Fed, 2009-2015)

Panelists:

  • Naoyuki Yoshino (Asian Development Bank Institute)
  • Sayuri Shirai (Asian Development Bank Institute, BOJ Policy Board 2011-2016)
  • Veerathai Santiprabhob (Bank of Thailand)
  • Cecilia Skingsley (Swedish Riksbank)
  • Perry Warjiyo (Bank Indonesia)
  • Luc Laeven (Director-General of Research, ECB)
  • Michael M Hutchison (UC Santa Cruz)
  • Robert McCauley (Bank for International Settlements)
  • Joon-Ho Hahm (Bank of Korea Policy Board)

Academic presentations:

  • Andrew Rose (UC Berkeley)
  • Joshua Aizenman (University of Southern California), Yin-Wong Cheung (City University of Hong Kong), and Hiroyuki Ito (Portland State University)
  • Mark Spiegel (Federal Reserve Bank of San Francisco), and Andrew A. Tai (Federal Reserve Bank of San Francisco)
  • Robert McCauley (Bank for International Settlements)
  • Tamim Bayoumi (Peterson Institute for International Economics), and Joseph E. Gagnon (Peterson Institute for International Economics)
  • James McAndrews (Federal Reserve Bank of New York)
  • Gunther Schnabl (University of Leipzig)

Important dates:

  • Deadline for submission of substantial draft papers: 15 October 2016
  • Decision on acceptance of submission: 1 November 2016
  • Conference date: 1–2 December 2016

Submissions should be emailed with the subject title of “The Implications of Ultra-low or Negative Interest Rates for Emerging Asia,” to: [email protected], Pornpinun Chantapacdepong, Asian Development Bank Institute, Tokyo, Japan. www.adbi.org.

Please submit two separate pdf files: One with the title page that includes the title, authors' names and affiliations, abstract, corresponding address/emails, and the other one with the title page that contains only the title and abstract.

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