This programme examines the internal workings and stability of the financial system. Is the financial system sufficiently stable or is it excessively prone to crises and systemic risk? What are desirable regulatory policies, and which policies can be counterproductive? Part of the research in this programme is conducted within the ESRC-funded Systemic Risk Centre (SRC). Research at the SRC studies financial, economic, legal and political structures, incentives, interdependencies, vulnerabilities and shocks which may trigger or amplify the next financial crisis, and seeks to develop tools to help policymakers and financial institutions become better prepared and increase resilience and effectiveness.
Systemic Risk Centre
Latest Publications
Low Rates and Bank Loan Supply: Theory and Evidence from Japan
In this paper, we explore the consequences of low nominal interest rates for credit supply, macroeconomic outcomes and policy. Using the protracted...
On the Fragility of DeFi Lending
We develop a dynamic model of DeFi lending that incorporates the following key features: 1) borrowing and lending are decentralized, anonymous...
The spread of COVID-19 in London: Network effects and optimal lockdowns
Journal of Econometrics, 235 (2), 2125-2154
When artificial intelligence becomes a central banker
Artificial intelligence is expected to be widely used by central banks as it brings considerable cost saving and efficiency benefits. However, as this...