The Concept of Systemic Risk
The aim of the study is to analyze the concept of systemic risk. The study reviews a multitude of systemic risk definitions in the literature. In...
Macroprudential oversight, risk communication and visualization
This paper discusses the role of risk communication in macroprudential oversight and of visualization in risk communication. Beyond the soar in data...
Simecs, Ithace Hours, Berkshares, Bitcoins and Walmarts
The practical and theoretical meaning of the rise and fall of new local and virtual currencies suggests that two basic theories of money both have...
What Happened in Cyprus? The Economic Consequences of the Last Communist Government in Europe
This paper reviews developments in the Cypriot economy following the introduction of the euro on 1 January 2008 and leading to the economic collapse...
How Insurers Differ from Banks: A Primer on Systemic Regulation
This paper aims at providing a conceptual distinction between banking and insurance with regard to systemic regulation. It discusses key differences...
Rescues Violating the German Constitution: The Federal Court Decides on a Theory of Finance
The Federal German Constitutional Court has made it clear that it considers the OMT program to be in violation of the ECB’s mandate. This paper argues...
How to lose money in derivatives: examples from hedge funds and bank trading departments
What makes futures hedge funds fail? The common ingredient is over betting and not being diversified in some bad scenarios that can lead to disaster...
The Fallibility of the Efficient Market Theory: a new paradigm
The efficient market theory has failed to explain the market behavior and asset pricing of recent years. A new model that incorporates the principal...
A resolvable bank
Making banks resolvable is a key component of the regulatory reform programme enacted in response to the crisis. A resolvable bank is one that is...
Competition and Credit Control
The Bank of England’s ‘consultative document’ on Competition and Credit Control was published on May 14th, 1971. It was a landmark occasion...
The ECB as Lender of Last Resort: Banks versus Governments
With the OMT program the ECB has de facto taken over the role as a lender of last resort (LoLR) for euro area governments. While this has been...
Systems and Systemic Risk in Finance and Economics
This paper examines the concept of systemic risk and provides an intuitive account of the economic thought on systems and the development of the...
Lost at Sea: The Euro Needs a Euro Treasury
The euro crisis remains unresolved even as financial markets may seem calm for now. The current euro regime is inherently flawed. Recent reforms have...
Financial Regulation After the Crisis: How Did We Get Here, and How Do We Get Out?
Following the crisis of 2007, regulatory authorities either are or should be engaging in a fundamental reconsideration of how they approach financial...
U.K. Monetary Policy: Observations on its Theory and Practice
In a dramatic change from the euphoria in the early 2000s based on a widespread belief in the “success” of the partial independence of the Bank of...
Macro-Modelling, Default and Money
Mainstream macro-models have assumed away financial frictions, in particular default. The minimum addition in order to introduce financial...
