The Financial Markets Panel (FMP) is a research forum sponsored by Nomura Research Institute with the aim of identifying and seeking solutions to the policy issues confronting developed economy central banks amid the economic and financial changes that have unfolded since the GFC. Its standing members include experienced policymakers, scholars engaged in macro-level research on the economy and financial system, and practitioners from financial institutions and the financial markets. It currently meets on a quarterly basis.
The FMP was launched in March 2009 as the impact of the US financial crisis was being felt around the world. Since then, the expectation has been that central banks in the developed countries should fulfill an unprecedentedly broad role that includes substituting for financial market functions, calming the financial system during financial crises, stabilizing prices and supporting the real economy under zero interest rates, curbing sovereign risk, and stabilizing the financial system with an eye to preventing future crises. Central banks have in fact taken on these responsibilities.
This dramatic change in central banks’ role is expected to have a long-term impact on economies and financial systems in the developed countries given the scale and duration of their unconventional monetary policy measures. It has therefore become more important than ever that a wide range of experts—including policymakers, private-sector representatives, scholars, and practitioners—develop a shared understanding of the policies being implemented by central banks in the developed economies and work together to determine appropriate directions for those policies going forward.
The Financial Markets Panel was created to allow experts in theory and practice to discuss central bank policy in the developed economies while sharing their knowledge and views about the latest economic and financial developments and related theory. The results of those discussions will continue to be broadly disseminated to policymakers, researchers, and practitioners around the world via the publishing of meeting minutes and individual exchanges of opinion.