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.
The Programme Directors are Martin Oehmke and Jean-Pierre Zigrand.
Systemic Risk Centre
Latest Publications
Latent fragility: Conditioning banks' joint probability of default on the financial cycle
Journal of International Money and Finance, 146, 103107
Why so many crises happen when we know why they happen and how to prevent them
Financial crises are not complicated, and many claim to know why they happen and how to prevent them. Why then do they happen with such alarming...
Unintended Consequences of Holding Dollar Assets
We examine a novel mechanism whereby the US dollar’s global dominance can have a large, unexpected impact on foreign Treasury yields in crisis periods...
Correlation between upstreamness and downstreamness in random global value chains
This paper is concerned with upstreamness and downstreamness of industries and countries in global value chains. Upstreamness and downstreamness...