The second in a series of research seminars (launched by the central bank last July) was held at the National Bank of Ukraine last week. Dr. Philipp Engler, Professor in Monetary Macroeconomics at Freie Universität (Berlin) presented the findings of his studies on “Sovereign risk, interbank freezes, and aggregate fluctuations”. The research seminar brought together representatives from the academic and expert communities, as well as the NBU.
Dr. Philipp Engler shared with the participants the findings of his research studying the interaction of sovereign default risk with the banking sector. He has developed a macroeconomic model with strategic default on public debt in which sovereign risk adversely affects bank funding conditions on the interbank market where government bonds are used as collateral. The model presented in this research can be applied to advanced and financially developed economies. This model is instrumental in explaining the co-movement of interest rates on public and private sector debt during times of deep fiscal crises experienced by Spain and Greece.
Please follow the link to view the research paper.
The next seminar with the participation of international experts is to take place in the coming weeks. With the aim of arranging further research seminars, we encourage potential contributors to collaborate with us and present the findings of their research studies on issues related to the activities of the National Bank of Ukraine and the operation of the financial system.
Proposals (with an indication of a suitable date for the seminar, and attached presentation materials, an executive summary and/or draft contributions) should be sent to the Research Division of the Monetary Policy and Economic Analysis Department for consideration via e-mail to: [email protected],[email protected]).