The Great Experimentation with Unconventional Monetary and Fiancial Policy

Cusco, Peru

July 3-4, 2013



At this Cusco yearly meeting we decided to focus mostly on emerging markets, in particular on Latin American, to emphasize their resilience and vulnerabilities to external shocks from important changes in the monetary policy stance of the U.S. Federal Reserve. Here the Eurozone crisis was not featured prominently in the discussion neither as a source of possible negative contagion or a drag on global aggregate demand. There was a general consensus that emerging markets may have been affected disproportionately by the expansionary monetary policies led by the Fed resulting in large capital inflows and that they were left vulnerable to reversals in the policy stance, although several participants indicated that structural and not cyclical factors have dominated capital flows to emerging markets. The ensuing foreign exchange reserve built-up was seen with trepidation though the advantages of large reserve holdings were stressed. Generally there seems to have been a divide between private market participants emphasizing the vulnerabilities of emerging markets and policy makers’ greater confidence in their ability to manage the slowdown of the international economy. Views on the effectiveness of financial regulation and macro prudential measures were mixed though several participants supported the need for tighter financial regulation. On the financial architecture side, there was a support for multilateral measures.



  • Aldo MENDES: Deputy Governor for Monetary Policy, Central Bank of Brasil
  • Athanasios ORPHANIDES: Senior Fellow MIT
  • Christian DURAND: Deputy Director General, Bank of France
  • Daniel VOLBERG: Vice President, Morgan, Stanley
  • Domenico LOMBARDI: Director Global Economics Program, CIGI
  • Elena ZOTOVA: Head of Employment Division at the Russia’s G20 Experts Council
  • Enrique ALBEROLA: Executive Coordinator, International Affairs, Bank of Spain
  • Etienne LACROIX: J.P. Morgan
  • Jaime CARUANA: General Manager, Bank for International Settlements
  • Javier GUZMAN: Deputy Governor, Bank of Mexico
  • Joaquin VIAL: Board Member, Central Bank of Chile
  • Jose Dario URIBE: Governor, Central Bank of the Republic, Colombia
  • Jose Luis ECRIVA: Chief Representative in the Office for the Americas, BIS
  • Julio VELARDE: Governor, Central Bank of Peru
  • Lin JINHAI: Secretary General, IMF
  • Lisa SCHINELLER: Managing Director, Sovereign Ratings, Standard and Poors
  • Livio STRACCA: Senior Advisor, European Central Bank
  • Lorenzo BINI SMAGHI: Senior Fellow, Harvard University
  • Manoj PRADHAN: Research, Morgan Stanley
  • Marc UZAN: Executive Director, Reinventing Bretton Woods Committee
  • Mario BERGARA: Governor, Central Bank of Uruguay
  • Massimiliano CASTELLI: Executive Director, UBS
  • Ousmene MANDENG
  • Piero GHEZZI: Former Head of Global Economics, Emerging Markets and FX Research, Barclays
  • Stijn CLAESSENS: Assistant Director in the Research Department, IMF
  • Turalay KENC: Deputy Governor, Central Bank of the Republic of Turkey
  • Yu WANG: Deputy Director General of Research Bureau, People’s Bank of China

This website uses cookies. By using this website you agree to the use of cookies. Read More

The Reinventing Bretton Woods Committee uses cookies on its website to count and analyse visits to the site. The organization uses this information sparingly and responsibly. Users of the site can configure their web browsers to notify them of these cookies or refuse to use them.