Panelists:

Conference Program

Thursday, September 30

Welcoming Remarks

William C. Hunter, Senior Vice President, Federal Reserve Bank of ChicagoMichael H. Moskow, President, Federal Reserve Bank of Chicago

Session 1: Review of Recent Financial CrisesModerator: Stefan Ingves, International Monetary Fund

Panelists: Ricardo Hausmann, Inter-American Development BankMasayuki Matsushima, Bank of JapanMark C. Medish, U.S. Department of the TreasuryPekka Sutela, Bank of Finland

Session 2: Review of Policy ResponsesModerator: Leo Melamed, Sakura Dellsher, Inc. and

Chicago Mercantile Exchange

Michael Mussa, International Monetary FundJoseph E. Stiglitz, World BankEdwin M. Truman, U.S. Department of the TreasuryJohn Hawkins, Bank for International Settlements

Discussant: Anna J. Schwartz, National Bureau of Economic Research

Dinner and Keynote Speaker

Chair: Robert J. Darnall, President and Chief Executive Officer,Ispat North America Inc.

Keynote Speaker: Andrew Crockett, General Manager,Bank for International Settlements

Friday, October 1

Session 3: What Have We Learned from the Crisesand Policy Responses?

Moderator: Karen H. Johnson, Board of Governors of theFederal Reserve System

Panelists: Sebastian Edwards, University ofCalifornia at Los AngelesRonald 1. McKinnon, Stanford UniversityWilliam R. White, Bank for International Settlements

438

Discussants: Robert Z. Aliber, University of ChicagoKihwan Kim, Media VaHey, Incorporated, Korea

Conference Program

Panelists:

Panelists:

Session 4: Redesign of Capital RegulationsModerator: Joseph R. Bisignano, Bank for International Settlements

Panelists: Robert E. Litan, Brookings InstitutionDaniele Nouy, Basel Committee on Banking SupervisionH. Onno Ruding, Citibank

Discussants: Michel Crouhy, Canadian Imperial Bank of CommerceMartin Hellwig, University of Mannheim, GermanyRyozo Himino, Financial Supervisory Agency, Japan

Lunch and Keynote Speaker

Chair: Verne G. Istock, Chairman, Bank One Corporation

Keynote Speaker: Laurence H. Meyer, Member, Board of Governorsof the Federal Reserve System

Session 5: Deposit Insurance Reform and Moral Hazardand Agency Problems

Moderator: David D. Hale, Zurich Group

Peter M. Garber, Deutsche Bank, LondonFrederic S. Mishkin, Columbia UniversityJean-Charles Rochet, Toulouse University, France

Discussants: Gerard Caprio, Jr., World BankGuillermo J. Escude, Central Bank ofArgentina

Session 6: Nonbank Financial Institutions, Too Big To Fail,and State Ownership

Moderator: William C. Hunter, Federal Reserve Bank of Chicago

Thomas M. Hoenig, Federal Reserve Bank of Kansas CitySimon Johnson, Massachusetts Institute ofTechnologyDavid A. Lipton, Moore Capital ManagementCharles M. Lucas, American International Group, Inc.

Dinner and Keynote Speaker

Chair: Michael H. Moskow, President, Federal Reserve Bank ofChicago

KeynoteSpeaker: William J. McDonough, President, Federal Reserve Bankof New York

Conference Program

Saturday, October 2

Session 7: Role of Supervision and RegulationModerator: John J. Wixted, Jr., Federal Reserve Bank of Chicago

439

Panelists: Paul Cantor, Toronto International Leadership Centrefor Financial Sector Supervision

Huw Evans, Financial Services Authority, United KingdomBrian Gray, Australian Prudential Regulation AuthorityAlejandro Reynoso del Valle, Banco de MexicoRichard Spillenkothen, Board ofGovernors of the

Federal Reserve System

Session 8: Future of Official International OrganizationsModerator: George G. Kaufman, Loyola University Chicago

and the Federal Reserve Bank of Chicago

Panelists: John Eatwell, Cambridge University, United KingdomMorris Goldstein, Institute for International EconomicsAndre Icard, Bank for International SettlementsRaymond F. Mikesell, University of OregonJilrgen Stark, Deutsche Bundesbank, GermanyThomas D. Willett, Claremont Graduate University

and Claremont McKenna College

Conference Summary and Closing RemarksRandall S. Kroszner, University of Chicago and the Federal Reserve Bank

of ChicagoGeorge G. Kaufman, Loyola University Chicago and the Federal Reserve Bank

of Chicago

Contributors

Robert Z. Aliber is professor of international economics and finance at the Univer­sity of Chicago, where he has been a member of the faculty since 1965. His currentresearch interests include the international financial system; exchange rate issues;international money, capital markets, and capital flows; the multinational firm; inter­national banking; and public policy issues. Mr. Aliber currently serves as director,Center for Studies in International Finance; on the research staff, Committee for Eco­nomic Development and Commission on Money and Credit; and as senior economicadvisor, Agency for Economic Development, U.S. Department of State. Mr. Aliberholds an A.B. in political economy from Williams College, an A.B. in economicsfrom Cambridge University, an A.M. in economics from Cambridge University, anda Ph.D. in economics from Yale University.

Joseph R. Bisignano is the head of the Research Group in the Monetary and Eco­nomic Department ofthe Bank for International Settlements. Before being appointedto this position he was deputy director of the department. Previously, Mr. Bisignanowas senior vice president and director ofresearch at the Federal Reserve Bank of SanFrancisco. He has served as a visiting professor ofeconomics at Stanford University,as well as assistant professor ofeconomics at Rutgers University. Mr. Bisignano holdsan M.A. and Ph.D. in economics from Stanford University, an M.B.A. in financefrom Columbia University, and a B.S. from the University of Buffalo.

Paul Cantor is executive director ofthe Toronto International Leadership Centre forFinancial Sector Supervision (The Toronto Centre). The center's mandate from itssponsors (the World Bank, Government of Canada, and York University) is tostrengthen financial markets in developing countries by transferring implementationand leadership skills to the public sector executives who supervise the financial ser­vice sector in those countries. From 1995 to 1998, Mr. Cantor was chairman andchiefexecutive officer of the National Trust. He was advisor to KPMG Peat MarwickThome Inc. from 1994 to 1995. From 1992 to 1994, he was president and chief ex­ecutive officer of Confederation Life Insurance. From 1986 to 1992, he served aspresident, investment bank at the Canadian Imperial Bank of Commerce, which hejoined in 1976 as vice president and director of taxation. Before joining the bank, heheld positions in the public and private sectors. Mr. Cantor is a fellow ofthe Instituteof Canadian Bankers at Ryerson University. He holds a bachelor of law from theUniversity ofToronto and a bachelor of arts from the University of Alberta.

442 Contributors

Gerard Caprio, Jr., holds the joint appointment of director, Financial Policy andStrategy Group, in the World Bank's Financial Sector Operations Vice Presidency,and manager, Financial Sector Research, in the bank's Development Research Group.Before joining the bank in 1988, he was vice president and head ofglobal economicsat J. P. Morgan. Previously, he held economist positions at the Board ofGovernors ofthe Federal Reserve System and the International Monetary Fund and taught at GeorgeWashington University. Mr. Caprio has researched and written extensively on finan­cial sector policy, financial reform, and monetary policy implementation, includingReforming Finance: Historical Implications for Policy and Financial Reform: Theoryand Experience. His current research is on the links between financial sector regula­tion and supervision and the performance of financial institutions, as welI as on fi­nancial crises. He received a Ph.D. in economics from the University of Michiganand an A.B. in economics from Williams ColIege.

Andrew Crockett has been general manager of the Bank for International Settle­ments since January 1994 and chairman of the Financial Stability Forum since April1999. From 1972 to 1989 he was a staffmember of the International Monetary Fund,and from 1989 to 1993, an executive director of the Bank of England. In the lattercapacity, he was a member of the Monetary Committee ofthe European Union, alter­nate governor ofthe International Monetary Fund for the United Kingdom, and a mem­ber (subsequently chairman) ofthe OECD's Working Party ofThree. He is a member ofthe Group of Thirty. Mr. Crockett was educated at Cambridge and Yale universities.

Michel Crouhy is senior vice president, Global Analytics, Market Risk ManagementDivision, at Canadian Imperial Bank of Commerce. Mr. Crouhy's responsibilitiesinclude the approval of alI pricing models used in trading and for profit and losscalculation and the development ofrisk-measurement methodologies. He also super­vises the implementation of the value-at-risk models for market risk and credit risk,the implementation of the financial rates database, and the production of statisticaland econometric studies related to risk management and model calibration. Previ­ously, he was a professor of finance at the HEC School of Management in Paris,where he was also director of the M.S. HEC in international finance. He has been avisiting professor at the Wharton School and at the University of California at LosAngeles. He holds a Ph.D. from the Wharton School.

Robert J. Darnall is president and chief executive officer of Ispat North AmericaInc., the regional headquarters of Ispat International N.V., based in London. From1992 to 1998, he was chairman and chiefexecutive officer ofInland Steel Industries,Inc., which was acquired by Ispat in 1998. Mr. Darnall is a member of the board ofdirectors of the Federal Reserve Bank of Chicago, Household International, Inc.,Cummins Engine Company, Inc., and Ispat International N.V. He is past chairman ofthe American Iron and Steel Institute and a director ofthe International Iron and Steel

Contributors 443

Institute. He serves on the board of trustees of the University of Chicago and is atrustee of the Museum of Science and Industry. Mr. Darnall graduated from DePauwUniversity in 1960 with a B.A. in mathematics. He earned a B.S. degree in civilengineering from Columbia University in 1962 and an M.B.A. from the Universityof Chicago in 1973.

John Eatwell has taught economics at Cambridge University, United Kingdom, since1970, and became president of Queen's College, Cambridge in 1997. From 1980 to1996, Mr. Eatwell was also a professor in the graduate faculty of the New School forSocial Research, New York. He has been a visiting professor at Columbia University,New York, the University of Massachusetts, Amherst, and the University ofAmsterdam. From 1985 to 1992, Mr. Eatwell served as economic adviser to NeilKinnock, the leader of the British Labor Party. In that post he was responsible formuch of the work that led to a substantial realignment of the Labor Party's economicpolicies. In 1992 he entered the House of Lords, and from 1993 to 1997, he wasprincipal opposition spokesman on treasury and economic affairs. In 1998, togetherwith others, he set up the Institute for Public Policy Research. In 1997, he joined theboard ofthe Securities and Futures Authority, Britain's securities markets regulator.In this position he has developed his interest in securities regulation, particularly withrespect to risk management in financial institutions. Mr. Eatwell was educated atCambridge and Harvard.

Sebastian Edwards is the Henry Ford II Professor of International Business Eco­nomics at the Anderson Graduate School of Management at the University ofCalifornia at Los Angeles. From 1993 to 1996, he was chief economist for LatinAmerica and the Caribbean at the World Bank. He is also a research associate of theNational Bureau of Economic Research, a member of the advisory board ofTransnational Research Corporation, and cochairman of the Inter American Seminaron Economics. Mr. Edwards is coeditor of the Journal ofDevelopment Economics,and an associate editor ofAnalisis Economico, the Latin American Research Review,Contemporary Policy Issues, the Journal ofInternational Trade and Economic De­velopment, the Journal ofInternational Financial Markets, and Institutions andMoney.He is a columnist for the Wall Street Journal, and has published widely on interna­tional economics, macroeconomics, and economic development. His articles havebeen published in the American Economic Review, the Journal ofMonetary Econom­ics, Oxford Economic Papers, the Journal ofDevelopment Economics, the QuarterlyJournal ofEconomics, and other professional journals. His latest books are Anatomyofan Emerging-Market Crash: Mexico 1994 and Labor Markets in Latin America:Combining Social Protection with Market Flexibility. He graduated from the Catho­lic University of Chile, and received an M.A. and Ph.D. in economics from the Uni­versity of Chicago.

444 Contributors

Guillermo J. Escude is head of the Research Department at the Central Bank ofArgentina. From 1993 to 1997, he was national director ofcoordination ofmacroeco­nomic policies at the Ministry of Economics and Public Works. Previously, he was asenior economist at Socma, the holding company of the Macri Group, from 1991 to1993, and a professor at the Instituto Torcuatos di Tella in Argentina from 1988 to1990. He has also been a visiting scholar at the University of California, Berkeley.Mr. Escude holds a bachelor's degree and a Ph.D. in economics from the UniversityofBuenos Aires.

Huw Evans is adviser on central policy at the Financial Services Authority, London.Prior to joining the authority in 1998, he was a member of the Basel Committee onBanking Supervision and Joint Forum; chairman of the Capital Working Group ofCore Principles Liaison Group; and UK executive director ofthe International Mon­etary Fund and World Bank from 1994 to 1997. He was previously employed ininternational finance at the UK Treasury, London. Mr. Evans was educated at Cardiff,Cambridge, and the London School of Economics.

Peter M. Garber is global strategist in Global Markets Research at Deutsche Bank,London, and professor of economics at Brown University. Previously, he was a pro­fessor ofeconomics at the University of Rochester and the University ofVirginia. Hehas been a visiting scholar at the Board ofGovernors of the Federal Reserve System,the Bank of Japan, and the International Monetary Fund. He has published articlesand books on the economics of speculative attacks, speculative bubbles, financialcrisis, financial history, and financial and banking structure. He received a Ph.D. ineconomics from the University of Chicago and an A.B. from Princeton University.

Morris Goldstein is the Dennis Weatherstone Senior Fellow in International Financeat the Institute for International Economics. Mr. Goldstein has held the position ofdeputy director of the International Monetary Fund Research Department, as well asserving as senior technical advisor at the U.S. Treasury, visiting research associate atthe London School ofEconomics, and Baker-Weeks Research Fellow at the BrookingsInstitution. He has published widely in the field of international economics. Mr.Goldstein received an A.B. in economics from Rutgers College and a Ph.D. in eco­nomics from New York University.

Brian Gray is the executive general manager of policy development, research, andconsultancy services at the Australian Prudential Regulation Authority. He is respon­sible for the development ofprudential policies covering the bulk of financial institu­tions, as well as all associated research activities conducted by the authority on thefinancial system and international regulatory developments. Prior to taking up hiscurrent position, Mr. Gray occupied a variety of positions in the Bank Supervision,Domestic Markets, and Economic Departments at the Reserve Bank ofAustralia.

Contributors 445

David D. Hale is the global chief economist for the Zurich Group and its investmentaffiliates. He joined the group following its acquisition ofKemper Corporation, wherehe had served as chief economist for many years. Since 1990, he has also been aconsultant to the U.S. Department ofDefense on how changes in the global economyare affecting U.S. security relationships. In addition to his responsibilities at Zurich,Mr. Hale is a member ofa variety of government and private sector economic policyresearch groups in Washington, Tokyo, and Bonn. Mr. Hale holds a B.Sc. degree ininternational economic affairs from Georgetown University's School of Foreign Ser­vice and an M.Sc. degree in economics from the London School of Economics.

Ricardo Hausmann is the chiefeconomist ofthe Inter-American Development Bank.The bank was established in 1959 to accelerate economic and social development inLatin America and the Caribbean. Previously, he was minister of coordination andplanning of Venezuela and the chainnan of the Joint Development Committee of theInternational Monetary Fund and the World Bank. He was also director of the boardof the Central Bank of Venezuela. Mr. Hausmann is on leave from the Instituto deEstudios Superiores de Administraci6n, where he is professor of economics andfounded the Center of Public Policy. He was assistant professor of economics at theCentral University of Venezuela from 1981 to 1984 and a visiting fellow at OxfordUniversity from 1988 to 1991. He was also general director ofthe Venezuelan PlanningMinistry from 1984 to 1985. He holds a Ph.D. in economics from Cornell University.

John Hawkins is senior economist, Emerging Markets Secretariat, at the Bank forInternational Settlements. Previously, Mr. Hawkins worked in the international eco­nomics area at the Reserve Bank ofAustralia. He was head ofthe Economic Divisionat the Hong Kong Monetary Authority from 1994 to 1996. He holds degrees in eco­nomics, finance, and arts from Sydney and Macquarie Universities and the LondonSchool of Economics.

Martin Hellwig is a professor at the University ofMannheim, Gennany. Previously,he held academic positions at Harvard University (1995-96), the University of Basel(1987-96), the University of Bonn (1977-87), Princeton University (1974-77), andStanford University (1973-74). He is a fellow ofthe Econometric Society, past presi­dent of the European Economic Association, an honorary member of the AmericanEconomic Association, and a member ofthe Gennan Monopolies Commission (since1998). His research focuses on the economics of infonnation, financial markets andfinancial institutions, and the foundations of macroeconomics and monetary theory.Mr. Hellwig studied economics and history at the Universities of Marburg and Heidel­berg in Gennany and received a Ph.D. in economics from the Massachusetts InstituteofTechnology in 1973.

446 Contributors

Ryozo Himino is director ofthe International Affairs Office at the Financial Supervi­sory Agency ofJapan and a member ofthe Basel Committee on Banking Supervision.Previously, he was a member of the Permanent Mission of Japan to the InternationalOrganizations in Geneva. In 1995, he was director of the Office for Planning andCoordination, Indirect Tax Division, Tax Policy Bureau, at the Japanese Ministry ofFinance. From 1993 to 1995, he was cochairman, Joint Session on Globalization ofFinancial Markets and the Tax Treatment of Income and Capital at the Organizationfor Economic Cooperation and Development. Prior to that, he was a member of theInterest Rate Risk Sub-Committee, Basel Committee on Banking Supervision, andheld various positions at the Japanese Ministry of Finance. Mr. Himino received anL.L.B. from the University ofTokyo in 1983 and an M.B.A. from Harvard BusinessSchool in 1987.

Thomas M. Hoenig is president and chief executive officer of the Federal ReserveBank of Kansas City. He is also a member of the Federal Reserve System's OpenMarket Committee, the key body with authority over monetary policy. He joined theFederal Reserve Bank in 1973 as an economist and assumed the role of president in1991. Mr. Hoenig directs Federal Reserve activities in the seven-state Tenth FederalReserve District, which comprises Colorado, Kansas, Nebraska, Oklahoma, Wyoming,the northern half ofNew Mexico, and the western third of Missouri. He is a memberof the Board of Directors of the Midwest Research Institute and the Banking Advi­sory Board at the University of Missouri-Kansas City and University of Missouri­Columbia. Mr. Hoenig received his doctorate in economics from Iowa State University.

William C. Hunter is senior vice president and director of research at the FederalReserve Bank of Chicago. Prior to his current position, he was a vice president andhead of the financial markets and banking sections in the Research Department of theFederal Reserve Bank ofAtlanta. He has held the position of associate professor offinance at Emory University and faculty positions at Atlanta University, the Univer­sity of Georgia, Chicago State University, and Northwestern University. He was avisiting scholar at the Board ofGovernors ofthe Federal Reserve System. Mr. Hunterreceived his B.S. in business and economics from Hampton Institute (now HamptonUniversity) and holds an M.B.A. in finance and a Ph.D. in finance and environmentfrom Northwestern University.

Andre Icard has been assistant general manager ofthe Bank for International Settle­ments since 1996. From 1964 to 1995, he was a staff member of the Banque deFrance. From 1990 to 1995, he was the general manager of the Economic Depart­ment of the bank. Mr. Icard was educated at Aix-en-Provence University.

Contributors 447

Stefan Ingves is director of the Monetary and Exchange Affairs Department at theInternational Monetary Fund. From 1994 to 1998, he was first deputy governor oftheSveriges Riksbank, Sweden. From 1990 to 1993, he was undersecretary at the Swedish

.Ministry ofFinance. Previously, he held positions at the Options and Futures Exchangeand Svenska Handelsbanken. Mr. Ingves is a member of the G-l 0 Deputies, the BISEurocurrency Committee, the Alternates Group and Banking Supervisory Subcommit­tee at the EMI, and the EU Commission's Banking Advisory Committee, and a boardmember of Tumba Bruk. His recent publications include "Loan loss recoveries anddebt resolution agencies: The Swedish experience," with Goran Lind in Banking Sound­ness and Monetary Policy. He received an M.S. and Ph.D. in economics from theStockholm School of Economics.

Verne G. Istock is chairman of the board of Bank One Corporation. He assumed thatposition in October 1998, following completion of the merger of First Chicago NBDCorporation and Banc One Corporation. He became chairman of First Chicago NBDCorporation in 1996. Mr. Istock serves on the board of directors of the Federal Re­serve Bank of Chicago, Kelly Services, Inc., Masco Corporation, Detroit Renais­sance, the Greater Downtown Partnership in Detroit, the Economic Club of Detroit,the Michigan Business Roundtable, and the Illinois Business Roundtable. He is adirector of the Chicago Council on Foreign Relations and a member ofthe EconomicClub ofChicago and the Commercial Club ofChicago. In addition, he has cochairedthe Hire the Future summerjobs program in Chicago since 1996. He is a past directorof the Financial Services Roundtable and the International Monetary Conference.Mr. Istock received his B.A. in economics in 1962 and his M.B.A. in finance in 1963from the University of Michigan.

Karen H. Johnson is director of the International Finance Division at the Board ofGovernors of the Federal Reserve System. Before her appointment as director in1998, she was associate director and assistant director of the division. She joined theBoard as an economist in 1979. Her principal areas of research interest are interna­tional finance, monetary theory and policy, and macroeconomics. From 1973 to 1979,she was an assistant professor in the Department of Economics at Stanford Univer­sity. From 1971 to 1973, she was an instructor in the Department of Economics atWellesley College. Ms. Johnson received a B.A. in economics from Radcliffe Col­lege and a Ph.D. in economics from the Massachusetts Institute of Technology.

Simon Johnson is an associate professor at the Sloan School of Management at theMassachusetts Institute ofTechnology (MIT). His research deals with crises in emerg­ing markets. He has worked extensively in Eastern Europe, the former Soviet Union,and Southeast Asia. Mr. Johnson is also a senior associate at Cambridge Energy Re­search Associates, a team leader at the Russian-European Center for Economic Policyin Moscow, and a research fellow at the Davidson Institute, University of Michigan.He previously worked at Harvard and Duke universities. He received his Ph.D. ineconomics from MIT.

448 Contributors

George G. Kaufman is the John F. Smith, Jr., Professor of Economics and Finance atLoyola University Chicago and a consultant to the Federal Reserve Bank ofChicago.From 1959 to 1970 he was at the Federal Reserve Bank ofChicago and, after teach­ing for ten years at the University of Oregon, he returned as a consultant to the bankin 1981. Mr. Kaufman's teaching and research interests are in financial economics,institutions, and markets. He is cochair ofthe Shadow Financial Regulatory Commit­tee and executive director of the Financial Economists Roundtable. Mr. Kaufmanreceived a B.A. from Oberlin College, an M.A. from the University of Michigan, anda Ph.D. in economics from the University of Iowa.

Kihwan Kim is chairman and CEO ofMedia Valley, Incorporated, ajoint private andpublic sector initiative to accelerate the development of information-technology in­dustries in Korea. In addition, he recently accepted the position of international advi­sor at Goldman Sachs. He is also chairman ofthe Korean National Committee for thePacific Economic Cooperation Council and chairman of the Society for UnificationStudies. Previously, he was senior advisor at the law firm of Kim & Chong. From1997 through 1999, Mr. Kim was Korea's ambassador-at-Iarge for economic affairs.From 1997 through 1998, he was a member of the Presidential Commission on Fi­nancial Reform, and from 1994 to 1998, he was a member of the Presidential Com­mission for Globalization Policy. From 1993 to 1997, Mr. Kim served as chairman ofthe Korea Trade and Investment Promotion Agency. He was a consultant to the OECDin 1993 and the World Bank in 1990. Between 1976 and 1990, Mr. Kim held posi­tions in both the public and private sectors. Prior to his return to Korea in 1976, Mr.Kim taught economics at a number of American universities, including the Univer­sity of California at Berkeley and the University of California at Davis. He receivedhis Ph.D. in economics from the University of California at Berkeley, an M.A. inhistory from Yale University, and a B.A. in history from Grinnell College.

Randall S. Kroszner is professor ofeconomics at the University ofChicago's GraduateSchool of Business and a consultant to the Federal Reserve Bank of Chicago. Mr.Kroszner has served as an economist on the President's Council ofEconomic Advis­ers and has been a consultant to the International Monetary Fund, the World Bank,and the Inter-American Development Bank. He has been a visiting professor at theStockholm School of Economics, the Institute for International Economic Studies atthe University of Stockholm, and the Free University of Berlin, and will be the OlinVisiting Fellow in Law and Economics at the University of Chicago Law Schoolduring 1999-2000. He is a faculty research fellow of the National Bureau of Eco­nomic Research and an associate editor of the Economics of Governance and theJournal of Economics and Business. Mr. Kroszner's research interests include theeconomics and politics of international and domestic banking and financial regula­tion, antitrust, financial history, and monetary economics, and he has testified before

Contributors 449

the u.s. Congress about bank regulatory refonn. His articles have appeared in schol­arly journals, including the American Economic Review, Journal ofPolitical Economy,Journal ofFinance, and Journal ofMonetary Economics; in policy journals, includ­ing The Public Interest and Regulation; and in books, including The New PalgraveDictionary ofMoney and Finance. He coauthored Explorations in the New MonetaryEconomics and coedited The Economic Nature ofthe Firm: A Reader. He receivedhis Ph.D. from the economics department of Harvard University in 1990 and gradu­ated from Brown University in 1984.

David A. Lipton recently joined the Capital Strategy group at Moore Capital Man­agement. His primary responsibility is to evaluate economic, monetary, and fiscaldevelopments in the leading industrial and emerging market economies. Previously,Mr. Lipton spent a year at the Carnegie Endowment for International Peace, afterserving in the Clinton administration at the Treasury Department from 1993 to 1996.As undersecretary ofthe Treasury for international affairs and before that as assistantsecretary, Mr. Lipton worked on all aspects of international economic policy. Hehelped lead the Treasury's response to the financial crisis in Asia and the effort tomodernize the international financial architecture. In 1993, he served as deputy assis­tant secretary for Eastern Europe and the fonner Soviet Union. Prior to that, Mr.Lipton was a fellow at the Woodrow Wilson Center of Scholars. From 1980 to 1992,working with Jeffrey Sachs ofHarvard University, he was an economic advisor to thegovernments of Russia, Poland, and Slovenia. From 1981 to 1989, he was also aneconomist at the International Monetary Fund. He received a B.A. in economics fromWesleyan University and an M.A. and Ph.D. in economics from Harvard University.

Robert E. Litan is the director of the economic studies program and Cabot FamilyChair in Economics at the Brookings Institution, where he served as a senior fellowfrom 1984 to 1993 and as director oftwo research centers in the program from 1987to 1993. From 1993 to 1995, he was deputy assistant attorney general at the U.S.Department ofJustice. During 1995 and 1996, he was associate director ofthe Officeof Management and Budget. Mr. Litan has practiced at two Washington law finns.He received his B.S. in economics from the Wharton School of Finance, Universityof Pennsylvania, his J.D. from Yale Law School, and both his M.Phil. and Ph.D. ineconomics from Yale University.

450 Contributors

Charles M. Lucas is director, market risk management at American InternationalGroup, Inc. (AIG). Mr. Lucas heads the Independent Risk Oversight Office in theFinancial Services Division. Prior to joining AIG in 1996, he was senior vice presi­dent and director of risk assessment and control at Republic National Bank of NewYork. He joined the bank in 1993. Prior to that, he was senior vice president of theFederal Reserve Bank ofNew York in charge of the International Financial Marketsstaff. Mr. Lucas joined the Federal Reserve in 1968 and held a variety ofpositions inthe Research, Statistics, and International Markets Divisions. He was granted a leaveof absence in 1978 to work with the International Monetary Fund on a technicalassistance mission to the Central Bank ofCeylon (now Sri Lanka). Mr. Lucas earneda bachelor ofarts degree in economics in 1961 and a doctor of philosophy degree ineconomics in 1968 from the University of California at Berkeley.

Masayuki Matsushima is executive director ofthe Bank ofJapan. Before his presentappointment, he served the bank in a number of capacities, including director of theResearch and Statistics Department, chief representative in Europe, and senior banksupervisor. He began his career at the bank in 1968. He holds an L.L.B. from theUniversity ofTokyo.

William J. McDonough was appointed the eighth president and chief executive of­ficer of the Federal Reserve Bank ofNew York in 1993. In that capacity, he serves asthe vice chairman and a permanent member of the Federal Open Market Committee(FOMC), the group responsible for formulating the nation's monetary policy. Mr.McDonough also serves as a member of the board ofdirectors of the Bank for Inter­national Settlements and chairman of the Basel Committee on Banking Supervision.Mr. McDonough joined the New York Fed in January 1992 as executive vice presi­dent. He became head of the bank's markets group and manager of open marketoperations for the FOMC. Mr. McDonough retired from First Chicago Corp. and itsbank, First National Bank of Chicago, in 1989. He was vice chairman of the boardand a director of the bank holding company from 1986 until his retirement. Prior tohis career with First Chicago, Mr. McDonough was with the U.S. State Departmentfrom 1961 to 1967 and the U.S. Navy from 1956 to 1961. Mr. McDonough earned amaster's degree in economics from Georgetown University and a bachelor's degreein economics from Holy Cross College in Worcester, Massachusetts.

Ronald I. McKinnon is the William D. Eberle Professor ofinternational Econom­ics and a senior fellow in the Center for Economic Development and Policy Re­form at Stanford University. His research and teaching interests cover money andfinance in developing and transitional economies, foreign exchanges, including U.S.­Japan trade disputes and international monetary standards, and the economics of

Contributors 451

market preserving federalism. Recent books include The Order ofEconomic Liber­alization: Financial Control in the Transition to a Market, The Rules ofthe Game:International Money and Exchange Rates, and Dollar and Yen: Resolving Eco­nomic Conflict between the United States and Japan. He has been a consultant tocentral banks and finance ministries in Latin America, Asia, and Europe, and tomany international agencies, including the World Bank and International MonetaryFund. He received his Ph.D. from the University of Minnesota and a B.A. from theUniversity ofAlberta.

Mark C. Medish is deputy assistant secretary ofthe U.S. Department ofthe Treasuryfor international affairs. His portfolio covers Central Europe, the New IndependentStates, North Africa, the Near East, and South Asia. Prior to joining the Treasury in1997, Mr. Medish served as senior advisor to the administrator of the United NationsDevelopment Program and as a senior advisor on Europe and the New IndependentStates at the U.S. Agency for International Development. Previously, Mr. Medishwas an attorney in private practice with Covington & Burling in Washington, DC,where he specialized in bank regulation, international trade, intellectual property, andlocal government law. Mr. Medish has taught international affairs and other subjectsat Georgetown University, Harvard, and Johns Hopkins. From 1990 to 1991, he wasa visiting research fellow at the Japan Institute ofInternational Affairs in Tokyo. Mr.Medish received a J.D. and an A.M. from Harvard and a B.S. from Georgetown, andis a D.Phil. candidate of Oxford University.

Leo Melamed is chairman and CEO ofSakura Dellsher, Inc., and chairman emeritusand senior policy advisor ofthe Chicago Mercantile Exchange (CME). Mr. Melamedis recognized as the founder of financial futures. In 1972, as chairman ofthe CME, helaunched the International Monetary Market, the first futures market for financialinstruments. In 1987, he spearheaded the introduction ofGLOBEX, the world's firstelectronic futures trading system. In 1999, Chicago Magazine named him as one of"The 100 Most Important Chicagoans of the 20th Century." Mr. Melamed has beenan advisor to the Commodity Futures Trading Commission and serves as special ad­visor on futures markets to governments worldwide. In 1982, he led the futuresindustry's effort before the U.S. Congress in creating the National Futures Associa­tion, a self-regulatory body of the futures industry. He was chairman of the associa­tion from its inception until 1989 and continues to serve as its permanent specialadvisor. He was editor of An Anthology: The Merits Flexible Exchange Rates andauthor of Leo Melamed on the Markets. Tn 1979, the University ofChicago GraduateSchool of Business established the Leo Melamed Prize for "a work of outstandingscholarship by a business school professor" and in 1991, the Leo Melamed EndowedChair for the study of futures markets.

452 Contributors

Laurence H. Meyer took office as a member of the Board ofGovernors of the Fed­eral Reserve System in 1996 to fill an unexpired tenn ending January 31, 2002. Priorto becoming a member ofthe Board, Mr. Meyer was president ofLaurence H. Meyerand Associates, a St. Louis-based economic consulting finn he cofounded in 1982,and a professor of economics at Washington University. He taught at WashingtonUniversity from 1969 to 1996, where he was a research associate of the University'sCenter for the Study ofAmerican Business and a fonner chainnan of the economicsdepartment. Mr. Meyer was honored by Business Week in 1986 as the top forecasterfor the year on its forecast panel. He was similarly honored in 1993 and 1996. Mr.Meyer has served as an economist at the Federal Reserve Bank of New York and as avisiting scholar at the Federal Reserve Bank ofSt. Louis. He received a B.A. from YaleUniversity and a Ph.D. in economics from the Massachusetts Institute ofTechnology.

Raymond F. Mikesell is an emeritus professor of economics at the University ofOregon. Previously, he was W. E. Miner Professor ofEconomics. Prior to joining theUniversity of Oregon in 1957, he was professor of economics at the University ofVirginia and, prior to that, was on the faculty of the University of Washington inSeattle. During the 1940s, he was a senior economist at the Treasury Departmentworking in Washington, DC, and in the Middle East. Mr. Mikesell was a staffmem­ber ofthe U.S. Delegation to the Bretton Woods Meeting in 1944. He has served as anadvisor to several presidential commissions and as a senior economist with thePresident's Council of Economic Advisors. He has authored 26 books, the latest be­ing Sustainable Development in Mineral Economies with Richard Auty.

Frederic S. Mishkin is the Alfred Lerner Professor ofBanking and Financial Institu­tions at the Graduate School of Business, Columbia University. Mr. Mishkin is aresearch associate at the National Bureau ofEconomic Research and has taught at theUniversity ofChicago, Northwestern University, and Princeton University. From 1994to 1997, he was an executive vice president and director of research at the FederalReserve Bank of New York and an associate economist of the Federal Open MarketCommittee of the Federal Reserve System. His research focuses on monetary policyand its impact on financial markets and the aggregate economy. He is the author of IIbooks, including The Economics ofMoney and Banking and Financial Markets. Inaddition, he has published numerous articles in professional journals and books andserved on a number of editorial boards. He has been a consultant to the Board ofGovernors of the Federal Reserve System, the World Bank, and the InternationalMonetary Fund, and a visiting scholar at the Ministry of Finance in Japan and theReserve Bank ofAustralia. He received his Ph.D. from the Massachusetts Institute ofTechnology.

Contributors 453

Michael H. Moskow is president of the Federal Reserve Bank ofChicago. He servesas the Chicago Fed's chief executive officer and as a voting member of the FederalOpen Market Committee, the Federal Reserve System's most important policymakingbody. Mr. Moskow began his career teaching economics and management at TempleUniversity, Lafayette College, and Drexel University. From 1969 to 1977, he held anumber of senior positions with the U.S. government, including senior staff econo­mist, Council ofEconomic Advisors; assistant secretary for policy development andresearch, U.S. Department ofHousing and Urban Development; director, Council onWage and Price Stability; and undersecretary ofiabor, U.S. Department ofLabor. Mr.Moskow joined Esmark, Inc., in 1977 and in 1980 was named executive vice presi­dent of Estronics, Inc., its wholly owned subsidiary. He later held senior positions atVelsicol Chemical Corporation, Dart and Kraft, Inc., and Premark International, Inc.(a spinoff from Dart and Kraft). In 1991, President Bush appointed Mr. Moskowdeputy U.S. trade representative with the rank ofambassador. He was responsible fortrade negotiations with Japan, China, and Southeast Asian and Middle Eastern coun­tries. In 1993, Mr. Moskow was named professor of strategy and international man­agement at the Kellogg Graduate School of Management, Northwestern University.Mr. Moskow is a member of the board of directors and the executive committee ofthe National Bureau of Economic Research and a member of the Economic Club ofChicago, the Civic Committee, and the Commercial Club of Chicago. He is the au­thor of seven books and more than 20 articles. Mr. Moskow received a B.A. in eco­nomics from Lafayette College in Easton, Pennsylvania, and an M.A. in economicsand a Ph.D. in business and applied economics from the University of Pennsylvania.

Michael Mussa is the economic counselor and director of the Department of Re­search at the International Monetary Fund. Previously, Mr. Mussa was a member ofthe faculty of the Graduate School of Business of the University ofChicago, startingas an associate professor in 1976 and being promoted to the William H. Abbott Pro­fessorship ofInternational Business in 1980. From 1971 to 1976, he was on the fac­ulty of the Department of Economics at the University of Rochester. During thisperiod, he also served as a visiting faculty member at the Graduate Center of the CityUniversity of New York, the London School of Economics, and the Graduate Insti­tute ofInternational Studies in Geneva, Switzerland.

Daniele Nouy is secretary general of the Basel Committee on Banking Supervision.Ms. Nouy joined the Basel Committee in 1994 as the French member ofthe commit­tee and chairman of the sub-group in charge of derivatives. In 1996, she was ap­pointed deputy secretary general and was named to her present position in 1998.Prior to joining the committee, she held various positions at the French BankingSupervisory Commission, including head of the Research Department and Policy

454 Contributors

Group from 1987 to 1990 and director offinancial institutions supervision from 1990to 1994. She joined the commission in 1976. From 1985 to 1987, she left the com­mission to serve as the Banque de France's representative in New York and to con­duct research on Euromarkets in the bank's Foreign Department. Ms. Nouy began herprofessional career in 1974 at the Banque de France.

Alejandro Reynoso Del Valle is the director of financial system analysis at Banco deMexico, where he has responsibility for the design and supervision of central bankregulation. Previously, he was director ofeconomic research. From 1995 to 1997, hewas associated with Grupo Televisa S.A. de CV., the largest media company in theSpanish-speaking world, first as director and executive producer of its business net­work and then as vice president for strategic planning. Before joining Grupo Televisa,Mr. Reynoso del Valle was president of the National Fund Commission. From 1991to 1993, he served as chief economic advisor to the minister in the Ministry of Fi­nance and Public Credit. From 1990 to 1991, he was technical assistant to the directorfor Spain and Mexico at the European Bank for Reconstruction and Development.Prior to 1990, he held various positions in the public sector. Since 1989, he has alsotaught at Instituto Tecnologico Autonomo de Mexico. Mr. Reynoso del Valle receiveda B.A. in economics from the Universidad Tecnol6gica de Mexico, an M.A. in eco­nomics from the Instituto Tecnologico Autonomo de Mexico, and a Ph.D. in econom­ics from the Massachusetts Institute ofTechnology.

Jean-Charles Rochet is a professor ofmathematics and economics at Toulouse Uni­versity, which he joined in 1988, and research director at the Institut d'EconomieIndustrielle. His research interests include theoretical microeconomics, theory ofcon­tracts, banking, finance, and insurance. Before joining the university, he was a pro­fessor of mathematics and economics at ENSAE from 1986 to 1988. He has alsotaught at a number ofuniversities, including the University ofParis. He holds a Ph.D.in mathematical economics from the University of Paris-Dauphine.

H. Onno Ruding is vice chairman of Citibank. He became a director ofCiticorp in1990 and was appointed vice chairman ofCiticorp/Citibank in 1992. One ofhis mainresponsibilities is to act as the senior officer for contacts with Citibank's corporate,investor, and public sector clients in North America, Europe, and Japan. Before join­ing Citicorp, Mr. Ruding was chairman of the Netherlands Christian Federation ofEmployers, The Hague. From 1982 until 1989, he served as the minister of finance ofNetherlands. He worked at the Ministry ofFinance, The Hague (1965-70), Amsterdam­Rotterdam Bank, Amsterdam (1971-76), as an executive director of the InternationalMonetary Fund, Washington, DC (1977-80), and as a member of the board of man­aging directors ofAmsterdam-Rotterdam Bank and chairman ofAMRa InternationalLtd., London (1981-82). He received his M.A. in economics and his Ph.D. in eco­nomics from Erasmus University, Rotterdam.

Contributors 455

Anna J. Schwartz is a member of the research staff at the National Bureau of Eco­nomic Research, a distinguished fellow of the American Economic Association, anda past president of the Western Economic Association. Ms. Schwartz has served asstaffdirector ofthe U.S. Gold Commission. She is the author ofnumerous articles onmonetary economics and several books. Ms. Schwartz has served on the editorialboard of the American Economic Review and is currently a member of the editorialboards of the Journal of Monetary Economics, the Journal of Financial ServicesResearch, and the Journal ofMoney, Credit, and Banking. She holds a Ph.D. in eco­nomics from Columbia University.

Richard Spillenkothen has served as director of the Division ofBanking Supervisionand Regulation ofthe Board ofGovernors of the Federal Reserve System since 1991.Mr. Spillenkothen oversees the supervision and regulation ofstate member banks, bankholding companies, edge and agreement corporations, and foreign banking institutionsoperating in the United States. He coordinates supervisory policy with Reserve Bankofficials as well as with other federal, state, and foreign banking authorities. Mr.Spillenkothen is a member of the Basel Committee on Banking Supervision and par­ticipates in the Joint Forum ofBanking, Insurance, and Securities supervisors. He holdsan M.B.A. from the University ofChicago and an A.B. from Harvard University.

Jorgen Stark has served as deputy governor and member of the directorate of theDeutsche Bundesbank since September 1998. From 1995 to 1998, Mr. Stark waspermanent secretary and personal representative ofthe federal chancellor in the prepa­ration ofWorld Economic Summits. Previously, he held various official positions at theMinistry of Finance, Economic Policy Department of the Federal Chancellery, andMinistry ofEconomics in Germany. Mr. Stark received his Ph.D. in economics in 1975.

Joseph E. Stiglitz is currently serving as senior vice president for development eco­nomics and chiefeconomist at the World Bank. Mr. Stiglitz served as chairman oftheU.S. Council ofEconomic Advisers from June 1995 and was a member of the Coun­cil and an active member ofPresident Clinton's economic team from 1993. Mr. Stiglitzis on leave from Stanford University, where he is a professor of economics. Previ­ously, he was a professor of economics at Princeton, Yale, and All Souls College,Oxford. Mr. Stiglitz helped create a new branch of economics, "the economics ofinformation," which has received widespread application throughout economics. Inthe late 1970s and early 1980s, Mr. Stiglitz helped revive interest in the economics oftechnical change and other factors that contribute to long-run increases in productiv­ity and living standards. He is also a leading scholar of the economics of the publicsector. In 1979, the American Economic Association awarded Mr. Stiglitz its biennialJohn Bates Clark Award, given to the economist under 40 who has made the mostsignificant contributions to economics. His work has also been recognized throughhis election as a fellow to the National Academy of Sciences, the American AcademyofArts and Sciences, and the Econometric Society.

456 Contributors

Pekka Sutela has served as head of the Bank of Finland Institute for Economies inTransition since 1998. From 1995 to 1997, Mr. Sutela wa'5 full-time professor in theeconomics of transition at the University of Helsinki. From 1990 to 1995, he heldvarious positions in eastern European economies at the Bank ofFinland. Mr. Sutela isthe coauthor, with J. Pekkarinen, of the standard Finnish university textbook in eco­nomics. Publications in English include Economic Thought and Economic Reform inthe Soviet Union as well as articles in journals and edited volumes. Mr. Sutela is amember of the executive committee of the Finnish Economic Association and a pastmember ofthe board of the European Association for Comparative Economic Studies.He has acted as a consultant to the World Bank, the United Nations, and various Finnishand other government and private bodies. He is also a frequent commentator in theFinnish media. Mr. Sutela studied economics, sociology, philosophy, and mathematicsat the University of Helsinki. He was awarded a doctorate in social sciences in 1984.

Edwin M. Truman was sworn in as assistant secretary of the U.S. Department of theTreasury for international affairs in 1998. This office is responsible for developing andexecuting U.S. policy in the areas of international economic and financial diplomacy;international monetary policy issues, including exchange rate policy; economic policycooperation among industrial nations (G-7); U.S. participation in the international fi­nancial institutions; financial services negotiations and policy issues affecting interna­tional financial markets; and international trade and investment policy. From 1987 to1998, Mr. Truman served as director ofthe Division ofInternational Finance, Board ofGovernors of the Federal Reserve System. He joined the division in 1972. From 1983to 1990, he was one of three economists on the staffof the Federal Open Market Com­mittee. He has been a member ofnumerous international groups working on economicand financial issues, including the G-I 0 sponsored Working Party on Financial Stabil­ity in Emerging Market Economies and the G-l 0 Working Group on the Resolution ofSovereign Liquidity Crises. His publications include works on international monetaryeconomics, international debt problems, economic development, and European eco­nomic integration. Mr. Truman is a former associate professor of economics at YaleUniversity, where he received his M.A. in 1964 and his Ph.D. in economics in 1967. Hereceived a B.A. and L.L.D. (hon.) from Amherst College.

William R. White was appointed manager in the Monetary and Economic Depart­ment of the Bank for International Settlements in 1994, and in 1995 he took up theposition ofeconomic adviser and department head. Mr. White was appointed adviserto the governor in 1984 and deputy governor of the Bank of Canada in September1988. He held positions in the Department ofBanking and Financial Analysis and theDepartment of Research at the Bank of Canada from 1972 to 1987. Previously, hewas an economist at the Bank ofEngland. Mr. White received a bachelor ofeconom­ics and political science degree from the University of Windsor in 1965 and wasawarded the Governor-General's medal. He holds an M.A. and Ph.D. in economicsfrom the University of Manchester.

Contributors 457

Thomas D. Willett is director ofthe Claremont Institute for Economic Policy Studiesand Horton Professor of Economics at Claremont Graduate University and ClaremontMcKenna College. Previously, Mr. Willett taught at Cornell, Harvard, and the FletcherSchool of Law and Diplomacy and the School of Advanced International Studies ofJohns Hopkins University, and served on the senior staff of the Council of EconomicAdvisors and as deputy assistant secretary for international affairs and director ofinter­national monetary research for the U.S. Treasury. Mr. White has been coeditor ofEco­nomic Inquiry and Public Policy and has served on the editorial boards of nine otherjournals. He also edits the series, The Political Economy ofGlobal Interdependence.Mr. Willett specializes in international and monetary economics, public choice, interna­tional political economy, and the political economy ofeconomic policy, and is the au­thor of numerous books and articles in these areas. He graduated from the College ofWilliam and Mary and received his Ph.D. from the University of Virginia.

John J. Wixted, Jr., is senior vice president in charge of the Supervision and Regu­lation Department at the Federal Reserve Bank of Chicago. He directs the supervi­sion ofmore than 1,000 state-chartered member banks, bank holding companies, andforeign bank branches in the Seventh Federal Reserve District. In addition, he servesas a member ofthe Management Committee and the Federal Reserve System's seniorofficers in charge of banking supervision group. Previously, Mr. Wixted was seniorvice president in charge of the Banking Supervision and Regulation, Credit RiskManagement, and Data Services departments at the Federal Reserve Bank ofCleve­land, where he began his career in bank supervision in 1973 as an assistant examiner.He also served as chairman of the user steering group for the National InformationCenter, a System database ofbank structure, financial, and examination information.He holds a B.S. in finance from Pennsylvania State University and an M.B.A in bank­ing and finance from Case Western Reserve University.