Maryam Farboodi 14 May 2016

Banks' balance sheets are complicated and opaque, making it hard to assess their health. In this Vox Views video, Maryam Farboodi suggests that opacity is an intentional choice by banks. Banks want to maximise their profits by offering the lowest return possible to investors without scaring them away. They choose to provide just enough information to maximise profits. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Paolo Fulghieri 13 May 2016

Are booms and busts in the technology sector irrational bubbles? In this Vox Views video, Paolo Fulghieri argues that this pattern is the outcome of rational investors who are uncertainty-averse about future innovation waves. Investors tend to value innovation more when it comes in clubs, whereas when innovation is done in isolation investors are more pessimistic. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Alex Cukierman 12 May 2016

The collapse of a big investment bank may bring down an entire financial system. In this Vox Views video, Alex Cukierman discusses the implications of uncertainty over bank bailouts. Changes in bailout likelihood and bailout uncertainty are disruptive to the market and might worsen crises. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Semyon Malamud 11 May 2016

Exchange-traded funds (ETFs) are an efficient way for small investors to invest in a specific index. In this Vox Views video, Semyon Malamud discusses the implications of the growing number of ETFs. In a perfectly efficient market, the price of the ETF should be equal to the net asset value, but deviations create arbitrage activities and lead to market inefficiencies. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Hongda Zhong 10 May 2016

Many assume that creditor coordination problems can only be a bad thing. In this Vox Views video, Hongda Zhong discusses the benefits of coordination problems among creditors. Such problems may create incentives for firms to pay debt back to avoid being cut out of the credit market in the future. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Kebin Ma 09 May 2016

Bank liquidity is a key component of the post Global Crisis environment. In this video, Kebin Ma discusses the interaction between market liquidity risk and funding liquidity risk. Capital requirements for preventing bank losses might not be as effective as we thought. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Thomas Gehrig 06 May 2016

Information asymmetry is a key factor during financial crises. In this Vox Views video, Thomas Gehrig compares the 1907 and 2007 crises and finds common patterns. Information is a driver of crises and of market liquidity. In periods of stress, finding liquidity is difficult and illiquidity increases mostly because of information. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Michalis Haliassos 05 May 2016

The free movement of people within the EU implies that individuals are confronted with unfamiliar policies and institutions. Can we expect them to adjust to these new sets of rules? In this Vox Views video, Michael Haliassos discusses his research on the role of cultural predispositions in household financial behaviour and the implications for the harmonisation of institutions across European countries. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Franklin Allen 04 May 2016

Financial regulations failed to stop the Global Crisis or prevent it from becoming so serious. In this video, Franklin Allen argues there is insufficient theoretical and empirical background on which to base regulations. Regulations tend to be introduced as immediate responses to a problem, and research needs to feed policy in order to provide regulators with the necessary theoretical and empirical tools to react efficiently. This video was recorded at the "Financial Regulation Initiative" conference organised by CEPR and held in London on 30 September 2015.

David Miles 03 May 2016

Capital requirements for banks are a key issue in the post-Crisis environment. In this video, David Miles discusses the importance of creating incentives for banks to start using equity rather than debt to finance themselves. The combination of asymmetric information and limited liability can give banks an incentive to take on more risk; capital requirements would force banks to take on less risk. This video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.