Laura Kodres, 15 October 2012

While financial reform is underway around the world, this column argues that much more needs to be done.

Nauro Campos, Jeffrey Nugent, 10 July 2011

If economic crises make the short-run pains of reforms easier to bear, then crises could yield considerable long-run benefits. But this column argues that the recent global financial crisis has been wasted thus far. It suggests that it is political crises – and not economic turmoil – that actually bring about reforms.

Viral Acharya, 17 June 2011

Viral Acharya of New York University talks to Viv Davies about capital requirements and measuring systemic risk. Acharya describes the development of the NYU Stern systemic risk rankings of US financial institutions and what he considers to be the dismal failure of the Basel risk-weight approach to addressing systemic risk. He cautions against the blanket call for more capital and instead recommends for more capital against systemic risk contributions of financial firms. He also discusses the shadow banking sector and how banking risk and sovereign risk are becoming dangerously intertwined. The interview was recorded in London on 2 June 2011. [Also read the transcript]

David Miles, 25 February 2011

David Miles of the Bank of England's Monetary Policy Committee talks to Viv Davies about ‘Monetary Policy in Extraordinary Times’, a speech he delivered in London on 23 February 2011. Two very large shocks have hit the UK economy – the near collapse of the banking system and, more recently, a sharp increase in commodity, energy and food prices. The first shock is deflationary, the second inflationary. Miles discusses how best to set monetary policy in the wake of these shocks and analyses how regulation and monetary policy can most effectively reduce the likelihood of future financial instability. [Also read the transcript]

Olivier Blanchard, 05 November 2010

Olivier Blanchard, economic counsellor at the IMF, talks to Romesh Vaitilingam about the two ‘rebalancing acts’ needed for a strong global recovery and the particular challenges facing the US, Europe and the emerging market economies. He also discusses fiscal consolidation, financial reform and ‘currency wars’. The interview was recorded on 4 November 2010 at the Centre for Economic Performance in London, where Blanchard was delivering a special lecture on ‘The State of the World Economy’. [Also read the transcript]

Viral Acharya, 22 October 2010

Viral Acharya talks to Viv Davies about a new book, 'Regulating Wall Street'. He discusses the success and failings of the Dodd-Frank Act and its implications for the US financial system. He outlines the crucial role of derivatives, the new council of systemic risk, SIFIs and the different approaches to resolution in the US and Europe. Acharya compares the Basel III proposals with the US reforms and suggests what should be priorities for discussion at the upcoming G20 summit. The interview was recorded in London on 13 October 2010. [Also read the transcript]

Viral Acharya, 20 August 2010

Viral Acharya talks to Viv Davies about the Dodd-Frank Act and his recent work on capital requirements, market-based measures of systemic risk and stress tests. He highlights the new NYU Stern Systemic Risk Rankings of US financial institutions, which use the Marginal Expected Shortfall (MES) as its basis. Acharya discusses the shortcomings of the Basel III proposals and compares the recent European stress tests with those undertaken in the US. He highlights the importance of international coordination in the areas of derivatives, and agrees that financial reform compliance will require a cultural shift in the banking system.

Viral Acharya, Matthew Richardson, 24 January 2010

Obama’s sweeping proposal for financial regulation took the world by surprise. Here two of the world’s leading professors of finance explain why it is step in the right direction from the standpoint of addressing systemic risk. They also point out a number of drawbacks that should be fixed.

Viral Acharya, 04 March 2009

The de Larosiere report is an important contribution to the future global financial architecture, especially its proposals for reform of EU regulatory supervision and global coordination. There is a surprisingly broad consensus on what needs to be done to fix the global financial system emerging. One hopes that the G20 summit will be a platform to launch key international reforms.

Events

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