The Risks of Deflation and How to Fight Them Conference November 17, 2003 The risks of deflation can no longer be considered as a mere historical curiosity. Contemporary analysis of macroeconomic developments would benefit strongly from re-appraising this historical phenomenon. Knowledge of the financial environments in which deflation occurs is essential to better understanding the reality of these risks and the ways in which they arise during the downturn of the financial cycle which has followed the wave of speculation during the last decade. The idea that the financial environment may generate powerful pro-cyclical forces also challenges the doctrine on which central banks built their credibility in fighting high inflation. Does the conventional wisdom in one period still hold, once the transmission channels of monetary policy have been modified profoundly by transformations in finance? These major issues warrant that the CIREM organises a conference bringing together economists specialised in macroeconomics, contemporary finance and the history of finance, along with political leaders, senior executives of central banks and international institutions. The conference will be made up of two round-tables: the first focussing on the sources and reasons for deflationary risks, the second on policies, which may be used to fight them.             The Sources and Reasons for Deflationary Risks     15:00   Francis Ailhaud Groupama Asset Management CIREM   Chair Michel Aglietta CEPII University Paris X   Speakers Laurent Berrebi Groupama Asset Management Richard Koo Nomura Presentation Pierre-Cyrille Hautcoeur University Paris I Policies to Fight the Risks of Deflation   16:45 Philippe Marini Senator   Chair Philippe Moutot European Central Bank Presentation Speakers Jeffery D. Amato Bank for International Settlements Presentation Charles Goodhart London School of Economics Heinz Jansen European Commission