Prudent Risk Management Approach to Monetary Policy Launch of FPAS MARK II
For the Tuesday Charles Goodhart Hour, Hayk Avetsyan from the Central Bank of Armenia (CBA) and Douglas Laxton, formerly of the IMF and the Bank of Canada, will present the CBA’s Prudent Risk Management Framework. They will discuss its design to address several issues highlighted in Bernanke’s Report on the Bank of England. The presentation will particularly focus on training and human capital development, the roles of the board and staff, and the development of open-source software tools (Python, Dynare, Julia, HighCharts, R) within central bank networks. These tools enable smaller central banks to meet best-of-the-best (BoB) standards.
Subsequently, Bob Ford, an advisor at the CBA with past experience at the OECD, IMF, and Bank of Canada, will provide his insights on the new framework and reflect on Bernanke's recommendations. The discussion will be moderated by Joeri Schasfoort.
There is already a multitude of public policy institutes. The BPP is trying to stand out from the rest by framing our mission as a project rather than an institute. At BPP, we try to pursue specific goals that can be achieved within a reasonable time frame. Our main mission is to improve the effectiveness of public policy via three avenues: raising public economic literacy, improving analytical frameworks in policymaking institutions and enhancing the communication of policy to the public.
Mission
-
Advancing the frontiers of monetary policy. Our philosophy highlights the need for assertive policies and maximum transparency.
-
Three C Approach: There is a need for public policy to be Comprehensive, Consistent and Coordinated.
-
Develop state-of-the-art frameworks for monetary, fiscal and macroprudential policies.
-
Economic literacy rate: Effective policy is partially dependent on credibility of the institution which is conditional on an educated populace.
Douglas Laxton
Douglas Laxton created Saddle Point Research and The Better Policy Project in Portugal after retiring from International Monetary Fund where he worked as a division chief for many years.
Douglas Laxton has enormous experience helping central banks develop transparent state-of-the-art policy frameworks. He also was responsible for many years developing analytical frameworks to support the IMF’s surveillance activities, and coordinating the production of the global outlook and risk assessments. Given his experience, he has a comprehensive understanding of the interactions between monetary policy and financial markets.
“We always plan too much and always think too little. We resent a call to thinking and hate unfamiliar argument that does not tally with what we already believe or would like to believe.”