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Date: 2 November 2010
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Venue: Shaw Library, Old Building, London School of Economics
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Organisers: Prof. Charles Goodhart (FMG. LSE), Dr Kevin James (CCBS, Bank of England)
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Conference Programme [PDF]
There now exists an extensive body of theoretical work that elegantly fleshes out Andrew Crockett's famous observation that "the financial system is a system". This "financial system as a system" perspective naturally suggests that there exists an opportunity for financial stability policy to better promote financial stability by taking into account the system wide externalities that the actions of individual financial institutions create, that is, by adding a "macroprudential" dimension. Yet, exploiting this opportunity will in practice require a great deal from our risk models, our regulatory institutions, and our economic analyses.
The conference explored:
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whether existing risk models can bear the weight that macroprudential policy places upon them;
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what the crisis revealed about the performance of regulatory institutions in the US and what general lessons and ideas for improving regulatory institutions can be drawn from that experience;
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the extent to which the theoretical work on systemic risk properly takes into account the manner that financial institutions actually deal with liquidity shocks; and
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the case for macroprudential policy in an imperfect world.
Presentations/Papers available:
If you have any questions regarding this conference, please e-mail FMG at fmg@lse.ac.uk|.
The FMG gratefully acknowledges the generous support from the LSE's Higher Education Innovation Fund, AXA Research Fund and CCBS, Bank of England.
