The European Colloquia Series 25-26 November, 2008, Venice, Italy

TUESDAY NOVEMBER 25 Fondazione Cini, San Giorgio Maggiore, Venice

“The World Economy, Financial Markets & Investors at an Awkward Corner” 9:30 – 9:45 Opening

• Giordano Lombardo, Deputy CEO, Pioneer Investments This edition of the European Colloquia Series is in honour of Franco Modigliani, the American-Italian economist & founder of ISEO whose contributions to the theory of savings and corporate finance remain milestones in modern economics. Five years after his death, many eminent colleagues, friends and students of his are among the speakers at this conference.

9:45 -10:15 Key Note Address

• Lorenzo Bini Smaghi, Member of the Executive Board, European Central Bank The European Central Bank’s view on the economy, both in Europe and worldwide.

Three Lectures in Honour of Franco Modigliani 10:15-11:00

Medium and long-term growth prospects for the advanced economies • Robert M. Solow, Nobel Laureate 1987 The current recession has brought us in new territories. The factors of growth change as time evolves and policy concepts need to be translated into the specifics of the current technological and employment context. Robert Solow has pioneered modern economic growth theory and will give his views on economic policy alternatives.

11:00-11:30 Coffee Break 11:30-12:15

Medium and long-term growth prospects for the emerging economies • Michael Spence, Nobel Laureate 2001 Emerging economies have been badly hit by the current downturn. Not only do emerging economies influence directly our rate of growth, inflation and commodity prices but also our policy options. Michael Spence who chairs the Commission on Growth & Development for the World Bank will address issues about the conditions for further sustained growth in these economies in the context of the present crisis, its causes and possible remedies.

The European Colloquia Series 25-26 November, 2008, Venice, Italy

12:15-13:00 Animal spirits: Non-economic motives and their impact on the business cycle • George A. Akerlof, Nobel Laureate 2001

George Akerlof will give a preview of the book he is co-writing with Robert Shiller on psychological, social and other factors, which influence the business cycle. In his groundbreaking paper, ‘The Market for Lemons’, he gives an explanation on the formation of prices for second hand goods. He will cover a broad scope with reference to business cycles, explanation of excesses and patterns of equilibrium. 13:00-14:15 Lunch 14:15-14:45

Monetary policy on both sides of the Atlantic: Current approaches & policy issues • Ester Faia, Professor, Chair in Monetary and Fiscal Policy, Frankfurt University • Sushil Wadhwani, CEO, Wadhwani Asset Management LLP Securitization and financial innovation have had a deep impact on the structure of financial systems. World economic policy decisions, including those from emerging economies, are ever more interrelated. We are witnessing, day by day the key impact of monetary policy in addressing the current market turmoil. Views differ on what role it can/should play.

14:45 – 15:45

Panel Session: Restoring Confidence Household portfolios & Investor Behavior: current concerns and long-term choices Introduced by Franco Bruni, Professor of International Monetary Economics, Bocconi University, Milan The present crisis will affect portfolio choice for many years to come. Franco Bruni will raise the key issues. Stephen Zeldes and Tullio Jappelli will highlight key current features of investor choice and their possible implications.

• Tullio Jappelli, Professor of Economics, University of Napoli Federico II • Stephen Zeldes, Professor of Economics & Finance, Columbia University Alessandro Profumo will discuss assessing possible future scenarios for financial intermediaries. • Alessandro Profumo, CEO, UniCredit Group

15.45-16.15 Coffee Break 16.15-17.00

Final Round Table with Robert Solow & Michael Spence • Moderated by Marco Onado, Professor of Financial Institutions at Bocconi University, Milan &

Chairman of Pioneer Investments 17.00-17.15 Conclusions by Dario Frigerio, CEO, Pioneer Investments