The adverse effects of the global financial crisis on the real economies of the world have gradually intensified since August 2007. Currently the world as a whole is facing with the threat of a global recession. In response, the governments and the central banks have been trying hard to contain the financial crisis, while taking policy measures to prevent the rapid contraction in aggregate demand.

Against this background, TÜSİAD-Koç University Economic Research Forum has organised a conference on “Global Financial Crisis and Monetary Policy” to discuss Federal Reserve’s closely-watched monetary policy responses to recent financial market developments, as well as the monetary policy dilemmas facing the emerging market economies in the wake of the financial crisis, with a particular focus on Türkiye. The conference was held at the Ceylan InterContinental Hotel on Dec. 17, 2008.

The first session of the conference is chaired by Associate Professor Selva Demiralp of Koç University. This session hosted Professor Kenneth Kuttner from Williams College who has served as an Assistant Vice President in the Research departments of the Federal Reserve Banks of New York and Chicago, and Seth Carpenter who is currently Assistant Director of the Division of Monetary Affairs and Chief of Monetary and Reserve Analysis Section at the Federal Reserve, Board of Governors. In his speech, Professor Kuttner analysed Fed’s role as a last render of resort and the effectiveness of its market interventions since August 2007. Whereas, Dr. Carpenter discussed the critical developments at each stage of the crisis, and Fed’s policy response including the use of innovative policy tools against the liquidity crunch.

The Monetary Policy Response in Emerging Market Economies and Türkiye is discussed in the second session of the conference which is chaired by Professor Sumru Altuğ of Koç University. In this session, Vice Governor of the Central Bank of Republic of Türkiye, Erdem Başçı delivered a speech on the impact of the crisis on the emerging market economies and the importance of monetary policy in this process. The last speech of the conference is delivered by Assistant Professor Refet Gürkaynak of Bilkent University, who discussed how the Turkish economy has been affected by the crisis, and the policy measures that have been implemented so far and can potentially be taken in the future to contain the damage from the crisis.

Conference Program and the Presentations:

“GLOBAL FINANCIAL CRISIS AND MONETARY POLICY”

December 17, 2008, Wednesday
Ceylan InterContinental, Anadolu Room

 TRANSCRIPTS (Original)

08:45-09:00   Registration

09:00-09:30    Opening Remarks 

Ali Kibar – TÜSİAD  
Kamil Yılmaz – TÜSİAD-Koç University Economic Research Forum

09:30-10:45    Session I : Crisis and American Monetary Policy Response  

Chairperson:
Selva Demiralp – Koç University

Speakers:
Kenneth Kuttner – Williams College
“What Has the Fed Gotten Itself Into?” (presentation)
“What Has the Fed Gotten Itself Into?” (text of the speech) 

Seth Carpenter – Federal Reserve, Board of Governors 
“The Recent Financial Crisis and the Provision of Liquidity“

10:45-11:00    Coffee Break 

11:00-12:15    Session II : Monetary Policy Response in Emerging Market Economies and Türkiye

Chairperson:
Sumru Altuğ – Koç University

Speakers:
Erdem Başçı – Central Bank of Türkiye
“The Impact of the Crisis on Emerging Economies” (the presentation is available in Turkish) 

Refet Gürkaynak – Bilkent University   
“Turkish Economy, Financial Crisis and Macroeconomic Policy” (the presentation is available in Turkish)