Central Banking Executive Program Archive
Organized by the Association for Research on Banking and the Economy (ARBE) with moral support from the Centre for Banking, Finance and Sustainable Development, University of Southampton, at Linacre College, University of Oxford
The Central Banking Senior Executive Programme at Linacre College, University of Oxford, offers senior central bank executives the opportunity to engage with the world leading experts in central banking, finance, banking and economics in analyzing the latest challenges in central bank operations and policy.
Central banks today face an unprecedented number and diverse range of demands. Many problems, however, can be traced to the role of banks as creators of the money supply, which has major implications for bank regulation, central banking operations and monetary and macroeconomic policies. Yet, this fact has remained ignored by economists and regulators alike for too long. Key instructors in this Executive Programme have been at the forefront of the currently ongoing revolution in monetary and macroeconomics and its ramifications for central bank policies.
Expert instructors include Professor Charles Goodhart (LSE), the UK’s leading central bank and monetary economics expert, Dr James Forder (Vice-Master, Balliol College, Oxford), the leading expert on central bank independence, credibility and transparency policies, Professor Dariusz Wójcik (Oxford University), an expert on international financial centres, Charlie Haswell (former adviser to the chairman of HSBC), a world leading bank regulation policy expert and Professor Richard Werner (University of Southampton and Linacre College, Oxford), the inventor of ‘Quantitative Easing’ and the Quantity Theory of Credit.
The programme will cover:
- Unconventional monetary policies – pitfalls, unintended side-effects and policy options
- Interest rate policy reconsidered – challenges at the zero bound, negative rates and empirical evidence on a half-century of interest rate policy during diverse macroeconomic scenarios
- Central bank independence reconsidered – the theory, the evidence, the challenges and the meaning of accountability
- Delivering high, sustainable, equitable, stable, non-inflationary growth – The Holy Grail of Central Banking
- The role of cash and the increasing digitalization of transactions – issues and impacts
- Calls for monetary reform and how central banks can respond and engage
- Banking sector structure and monetary policy effectiveness
- Bank regulation: The Basel approach and its shortcomings – New approaches and empirical evidence
- The interaction of fiscal and monetary policy – new ways towards constructive engagement
- Empirical evidence and methods to harness it for policy discussions, including an applied econometrics crash course
- Debates and controversies surrounding central bank policy – and how central banks can engage better with researchers, media and the public
Cutting-edge research results and their implications for central banks
Modern macro and monetary economics, finance and bank regulation have been premised on the idea that banks are merely financial intermediaries, receiving deposits and lending these out. However, Professor Werner has argued since 1991 that banks are in fact the creators of the money supply and that this has crucial implications for bank regulation, central bank policy, fiscal policy and macroeconomics in general. In 2014 and 2015, Professor Werner published the first empirical evidence in peer-reviewed journals in the history of banking which finally settled this question concerning banks, demonstrating that banks are not intermediaries, but creators of the money supply. Both the financial intermediation and the fractional reserve theories of banking were rejected. Werner’s Quantity Theory of Credit led him to warn of the impending collapse of the Japanese banking system in 1991, when the top ten banks in the world were all Japanese and Japanese GDP grew by about 7%. In 1994 and 1995 Professor Werner proposed new policies to avoid banking crises, but also how to quickly end them once they have struck – introducing his concepts of Quantitative Easing (expanding credit creation for GDP transactions) and Enhanced Debt Management (policies to quickly kick-start broad credit creation and hence economic growth). It is possible to deliver high, sustainable, stable, non-inflationary and equitable economic growth without crises – and participants in this Executive Programme will be able to delve into the details of such policies in a challenging comparative analysis. They will be able to pick the brains of leading thinkers in central banking research, as well as draw on decades of personal experience (Professor Goodhart has been a leading practitioner in central banking for over 50 years).
Certificate of Completion from Linacre College, University of Oxford
There will be a Certificate of Completion issued by the Principal of Linacre College, University of Oxford, and ARBE, a registered UK educational charity specializing in banking. The five-day programme of seminars, lectures, work-shops and discussions will be followed by a joint excursion on Saturday. Outside class, all participants have the chance to taste the diverse range of Oxford social, cultural and sporting life.
The programme fee includes one week of academic programme, full accommodation in en-suite College rooms at Oxford University, full board (breakfast, lunch and dinner), including a formal Oxford dinner at College, and an excursion with an expert guide. For more information please contact us at info@arbe.org.uk. Participation will be limited to the first 25 participants from central banks and a small number of commercial bank senior executives, so early booking is recommended.
Instructors
Prof. Charles Goodhart is Director of the Financial Regulation Research Programme at the LSE. The originator of “Goodhart’s law” and a legendary figure in world monetary economics, Professor Goodhard served at the Bank of England for many years and was founding member of its Monetary Policy Committee from June 1997 to May 2000. He has published extensively in leading journals. He is considered one of the world’s top monetary policy experts.
Dr. James Forder is the Andrew Graham Fellow and Tutor in Political Economy at Balliol College, Oxford and Executive Vice-Master of the College. Dr Forder is a known expert in the history of economics in the 20th century, on central bank independence, the economics of European integration and the political economy of European Monetary Union. As Vice-Master (Executive), Dr Forder is a source of advice to Balliol College on its budgetary position, and, in particular, on its non-academic income and expenditure.
Baron Karl-Theodor von und zu Guttenberg is a German businessman and politician of the Christian Social Union (CSU). He served as Minister of Defence (2009-2011) and Minister for Economics and Technology (2009). In 2011, he joined the Center for Strategic and International Studies, USA, as a Distinguished Statesman. He is also an advisor to the EU Commission on the promotion of internet freedom regarding questions of foreign affairs. Karl-Theodor is the chairman and founder of Spitzberg Partners, New York.
Charles Haswell was for many years the Advisor to the Chairman of HSBC in London. He headed the financial sector policy function at HSBC Holdings. Before banking, he was an experienced diplomat with the Foreign and Commonwealth Office. He is an expert in banking regulation, prudential regulation, liquidity regulation and banking policy engagement.
Dr. Kang-Soek Lee, Ph.D. in economics from the University of Orléans, holds the French national qualification as Associate Professor of Economics at national universities. Currently candidate for Habilitation, he is a tenured Research Professor at the Paris Chamber of Commerce and Industry, the founding institution of HEC and ESCP. He has taught international finance and applied econometrics in France since 2004. His research interest focuses on econometric analyses of dynamics in exchange rates movement and international financial markets.
Daniel Palotai is an executive director and the chief economist of the Hungarian central bank (Magyar Nemzeti Bank). His professional career started in the monetary strategy division in 2004. From 2007, he worked as an economist at the European Central Bank. From November 2010, he was head of the macroeconomic policy department of the Ministry for National Economy and was actively involved in the development of Hungary’s structural reform programme. As a member of the Economic Policy Committee of the European Union, he has contributed to economic and financial stabilisation in Hungary. In March 2013 Daniel Palotai re-joined the Magyar Nemzeti Bank to become executive director responsible for monetary policy and chief economist. Since September 2015, he has been responsible for international and priority matters. He is also a member of the Monetary Policy Committee of the European Central Bank and of the Economic and Financial Committee of the European Union.
Dr. Farhad Reyazat, PhD in finance from the University of Southampton, has worked for many years in the banking industry. He has advised hundreds of businesses in the UK and overseas. His teaching experience spans undergraduate, postgraduate and executive education in Europe and the Middle East. He has taught mainly in the areas of risk management, international banking, financial analysis, and corporate finance. Farhad has also consulted for several investment banks and financial regulators. His research interests include systemic risk modelling, financial risk management, operational risk measurement and international banking. His doctorate focused on risk management and presented a new model of interbank market systems dependency.
Dr. Josh Ryan-Collins, PhD from the University of Southampton, is a Senior Economist at the New Economics Foundation, one of the UK’s leading think tanks. His research focuses on financial reform, including structural banking reform, monetary policy, the macroeconomics of land and housing, ecological economics and alternative money and exchange systems. He is a lead author of a bestselling guide to the monetary system, ‘Where Does Money Come From?’ which is used as a textbook in a number of universities. He is a co-founder of the ‘Brixton Pound’ local currency in South London. He is a visiting research fellow at the University of Southampton Centre for Banking, Finance and Sustainable Development.
Dr. Konstantinos Voutsinas is the risk and compliance officer of Providence Asset Management and director of Local First CIC. Konstantinos completed a PhD in Corporate Finance from the University of Southampton where he examined the impact of credit rationing on capital structure decisions. Subsequently he has been working in the asset management industry, with a specialization in risk and compliance, becoming an FCA approved person in 2010 (CF10, CF11, CF28). Konstantinos is one of the founding members of Hampshire Community Bank, currently in the process of obtaining a banking license from the PRA/FCA.
Prof. Richard A. Werner, D.Phil. (Oxon) is a Member of Linacre College. He is a leading expert on central banking and banking. He chairs the MSc International Banking programme at the University of Southampton and has taught monetary, macro and development economics across the globe – Sophia University, Japan; Moscow State University, Russia; and Goethe University Frankfurt, Germany. He developed a new macroeconomic theory, the “Quantity Theory of Credit” in 1992. In his book “New Paradigm in Macroeconomics” (2005) he warned of the coming banking crisis. In his book “Princes of the Yen” (2003), a best-seller in Japan, he warned that the ECB would create banking crises in the Eurozone. As chief economist of Jardine Fleming Securities (Asia) Ltd. in Tokyo he coined the monetary policy concept of “quantitative easing” (1995).
Prof. Dariusz Wójcik is Professor of economic geography at the University of Oxford, specializing in financial geography. He has published three books and over forty articles and book chapters in leading journals and edited volumes. He co-leads one of the largest ever research projects on financial centre development in co-operation with lawyers and economists, funded by the Hong Kong government. His book The Global Stock Market: Issuers, Investors and Intermediaries in an Uneven World (OUP 2011) focuses on the relationships between issuers, investors, and intermediaries and how these relationships impact the performance of stock markets and the economy of cities, countries, and the world. The book examines the rise of emerging markets, the impact of the global financial crisis, the revolution in the stock exchange business model, and the continued dominance of London and New York as financial centres.
Accomodation & Meals
The Central Banking Senior Executive Programme offers a range of rooms for accommodation. The standard, included in the price, is a single occupancy room with en-suite bathroom in a College of the University of Oxford. The room will be supplied with internet access, shared laundry facilities and kitchenettes. The College accommodation includes breakfast. For lunch and dinner, all participants will be provided with the Linacre College dining facilities. A formal Oxford dinner is also included at Linacre College, University of Oxford, which is an integral part of Oxford college life.
How to Register
Participation is limited to 25 central bank professionals. We thus recommend early registration. Please send an email with your name, your affiliation and department, your contact details (address, telephone number and direct email address) to convenor@arbe.org.uk . We will process your registration and get back in touch with you.
Schedule
24 – 28 July 2017
| Sunday A r r i v a l & A c c o m m a t i o n | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday D e p a t u r e |
| Opening by Prof. RA Werner (9:00 – 9:30) | Prof. Dariusz Wojcek – The changing map of the financial world (9:00 – 10:45) | Dr. Farhad Reyazat – Risk management at central banks and risk in interbank networks (9:00 – 10:30) | Charles Haswell (HSBC) – Bank and central bank interactions and leverage – Macroprudential implications (9:00 – 10:30) | Dr. Kang‐Soek Lee ‐ Hands‐on applied econometrics (9:00 ‐ 10:30) | ||
| The three theories of banking and economic methodologies by Prof. Richard A Werner (9:30 – 12:30) | Prof. David Llewellyn – Financial regulation (10:45 – 12:30) | Daniel Palotai – Innovations in Monetary Policy (10:30 – 12:00) | Prof. James Forder – Philips curve, monetarism and its implications for today (10:30 – 12:00) | Dr. Josh Ryan-Collins – Monetary reform to end asset bubbles? (10:30 – 12:00) | ||
| Lunch (12:30 – 13:45) | Lunch (12:30 – 13:45) | Lunch (12:30 – 13:45) | Lunch (12:30 – 13:45) | Lunch (12:30 – 13:45) | ||
| Prof. Charles Goodhart – Monetary policy and the latest challenges for central bankers (13:45 – 15:30) | Prof. Charles Goodhart – Corporate governance at central banks – The meaning of accountability (13:45 – 15:30) | Daniel Palotai – Applied macropolicies in Hungary, Lessons to learn (13:45 – 15:30) | Dr. James Forder – Central Bank Independence – The myths and reality (13:45 – 15:30) | Prof. RA Werner – Central Banking and Economic Development (13:45 – 15:30) | ||
| Coffee Break (15:30 – 16:00) | Coffee Break (15:30 – 16:00) | Coffee Break (15:30 – 16:00) | Coffee Break (15:30 – 16:00) | Coffee Break (15:30 – 16:00) | ||
| Prof. RA Werner – Towards a Quantity Theory of Credit (16:00 – 17:45) | Prof. David T Llewellyn – Banking structure and financial sector performance (16:00 – 17:45) | Baron Karl Theodor zu Guttenberg – From the Medicis to central bank cyber-currencies (16:00 – 17:45) | Prof. RA Werner – Quantitative Easing and the demographic challenge (16:00 – 17:45) | Visit and guided tour of Blenheim Palace – England’s largest palace | ||
| Dinner (18:00 – 19:00) | Dinner (18:00 – 19:00) | Dinner (18:00 – 19:00) | Dinner (18:00 – 19:00) | Dinner (18:00 – 19:00) |
Dear Participant,
It is with great pleasure that I welcome you on the 2nd Central Banking Executive Programme, which we are delighted to be delivering at Linacre College, University of Oxford in early September.
The programme is organised at Oxford by the Association for Research on Banking
and the Economy, a UK-registered educational charity, in association with the Centre for Banking, Finance and Sustainable Development.
This year the programme also benefits from collaboration with the Fanhai International School of Finance at Fudan University, and the China Institute of Economics and Finance at Fudan University.
Macroeconomics and monetary economics are currently undergoing a revolution: Many experts have realized that the models and theories used for the past 50-or-so years have been insufficient: The recent experience of banking crises has shown that important factors had been neglected. Capital adequacybased bank regulation has not performed well. Moreover, the latest research indicates that interest rates work differently from the way conventional theories assume. Many experts now agree that banking needs to be at the heart of macroeconomic models and policy deliberations, and it needs to be properly understood how banks operate. Also, models that do not assume equilibrium appear more in line with the empirical evidence. Very high East Asian economic growth had in fact been based on a different paradigm in economics, one that recognised disequilbrium and credit creating banks and that deserves a reconsideration in the light of the latest empirical findings.
The 2nd programme is being held in England at a time when the UK government has called for a new appreciation of the importance of industrial policy. Long neglected as allegedly being unnecessary (as unregulated markets were supposed to deliver the best outcomes), other governments have also concluded that the fictional theoretical models within which no industrial policy is necessary have little to do with the reality that top-level decision-makers are facing.
The Central Banking Executive Programme is unique in that it is designed specifically for central bankers, high-level policy-makers, including at government ministries, as well as selected senior finance professionals from the private sector. The programme provides participants with a comprehensive understanding of the challenging issues involving government economic policy, monetary and fiscal policy, the banking system in the post-2008 world, and policies to create sustainable, stable and inclusive economic growth and prosperity. We are confident that the rewards from completing the programme will be substantial. These will be derived, not only from an enhancement of your understanding of most important and challenging issues on central banking, but also from the development of a strong network of senior international contacts at the programme.
We are pleased to introduce you personally to a leading group of experts who will present and engage with you on the programme. Expert presenters include Professor Kern Alexander (Cambridge and Zurich universities and one of the co-authors of the Basel II framework at the BSBC), Dr James Forder (Vice-Master, Balliol College, Oxford), the leading expert on central bank independence, credibility and transparency policies, Professor Charles Goodhart (LSE), the Bank of England’s leading central bank and monetary economics expert, Charles Haswell, former adviser to the chairman of HSBC and leading expert on bank regulation policy, Baron Karl-Theodor zu Guttenberg, a former senior government minister and political star from Germany who is leading a strategic policy and advisory think tank in New York and Professor Dariusz Wójcik (Oxford University), a top expert on international financial centres, in addition to fellow central bankers from Hungary and Japan, who will speak about their experience with very challenging circumstances. You will have the chance to meet these leading lights, discuss with them, benefit from their insights – and often join them for lunch or dinner at Linacre College.
The programme also features my work, which includes my original proposal for a new monetary policy in the mid-1990s, when I was chief economist of an investment bank in Tokyo, which I called “Quantitative Easing”. It will feature my policy design to boost domestic growth quickly without extra government expenditure, by simply switching the public sector funding method (“Enhanced Debt Management”). And of course it will feature the first empirical tests I conducted in the 5000-year history of banking on hitherto widely disputed but crucial details about how banks actually operate and fund their loan extensions. It turns out that no prior savings are needed for banks to fuel business investment through their lending. Moreover, in my latest empirical research, published in a top-rated peer-reviewed journal, I demonstrate that foreign investment, including FDI, does not actually boost economic growth of the receiver country. Instead, domestic bank credit policies determine and can significantly enhance economic growth and deliver sustainable and stable prosperity for all.
As participants, you too will play an important role in the success of the programme. Contextualising the programme material in the day-to-day experiences of participants is an integral ingredient of the Central Banking Executive Programme. Active participation and discussion, where participants can draw on each other’s experiences, will be encouraged and facilitated by lecturers.
I look forward to seeing you in early September up at Oxford.
Warm Regards
Professor Richard A. Werner, Programme Director
Central Banking Programme 2018 PDF Download
Dear Participant,
It is with great pleasure that I welcome you on the 3rd Central Banking Executive Programme, which we are delighted to be delivering at Brasenose College, University of Oxford in early September.
The programme is organised at Oxford by the Association for Research on Banking and the Economy, a UK-registered educational charity, in association with the Centre for Banking, Finance and Sustainable Development. This year the programme also benefits from collaboration with the Fanhai International School of Finance at Fudan University, and the China Institute of Economics and Finance at Fudan University.
Macroeconomics and monetary economics are currently undergoing a revolution: Many experts have realized that the models and theories used for the past 50-or-so years have been insufficient: The recent experience of banking crises has shown that important factors had been neglected. Capital adequacy-based bank regulation has not performed well. Moreover, the latest research indicates that interest rates work differently from the way conventional theories assume. Many experts now agree that banking needs to be at the heart of macroeconomic models and policy deliberations, and it needs to be properly understood how banks operate. Also, models that do not assume equilibrium appear more in line with the empirical evidence. Very high East Asian economic growth had in fact been based on a different paradigm in economics, one that recognised disequilbrium and credit creating banks and that deserves a reconsideration in the light of the latest empirical findings.
The 3rd programme is being held in England at a time when the UK government has called for a new appreciation of the importance of industrial policy. Long neglected as allegedly being unnecessary (as unregulated markets were supposed to deliver the best outcomes), other governments have also concluded that the fictional theoretical models within which no industrial policy is necessary have little to do with the reality that top-level decision-makers are facing.
The Central Banking Executive Programme is unique in that it is designed specifically for central bankers, high-level policy-makers, including at government ministries, as well as selected senior finance professionals from the private sector. The programme provides participants with a comprehensive understanding of the challenging issues involving government economic policy, monetary and fiscal policy, the banking system in the post-2008 world, and policies to create sustainable, stable and inclusive economic growth and prosperity. We are confident that the rewards from completing the programme will be substantial. These will be derived, not only from an enhancement of your understanding of most important and challenging issues on central banking, but also from the development of a strong network of senior international contacts at the programme.
We are pleased to introduce you personally to a leading group of experts who will present and engage with you on the programme. Expert presenters include Professor Kern Alexander (Cambridge and Zurich universities and one of the co-authors of the Basel II framework at the BSBC), Dr James Forder (Vice-Master, Balliol College, Oxford), the leading expert on central bank independence, credibility and transparency policies, Professor Charles Goodhart (LSE), the Bank of England’s leading central bank and monetary economics expert, Charles Haswell, former adviser to the chairman of HSBC and leading expert on bank regulation policy, Baron Karl-Theodor zu Guttenberg, a former senior government minister and political star from Germany who is leading a strategic policy and advisory think tank in New York and Professor Dariusz Wójcik (Oxford University), a top expert on international financial centres, in addition to fellow central bankers from Hungary and Japan, who will speak about their experience with very challenging circumstances. You will have the chance to meet these leading lights, discuss with them, benefit from their insights – and often join them for lunch or dinner at Brasenose College.
The programme also features my work, which includes my original proposal for a new monetary policy in the mid-1990s, when I was chief economist of an investment bank in Tokyo, which I called “Quantitative Easing”. It will feature my policy design to boost domestic growth quickly without extra government expenditure, by simply switching the public sector funding method (“Enhanced Debt Management”). And of course it will feature the first empirical tests I conducted in the 5000-year history of banking on hitherto widely disputed but crucial details about how banks actually operate and fund their loan extensions. It turns out that no prior savings are needed for banks to fuel business investment through their lending. Moreover, in my latest empirical research, published in a top-rated peer-reviewed journal, I demonstrate that foreign investment, including FDI, does not actually boost economic growth of the receiver country. Instead, domestic bank credit policies determine and can significantly enhance economic growth and deliver sustainable and stable prosperity for all.
As participants, you too will play an important role in the success of the programme. Contextualising the programme material in the day-to-day experiences of participants is an integral ingredient of the Central Banking Executive Programme. Active participation and discussion, where participants can draw on each other’s experiences, will be encouraged and facilitated by lecturers.
I look forward to seeing you in early September up at Oxford.
Warm Regards
Professor Richard A. Werner, Programme Director
Central Banking Programme 2019 PDF Download