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Online seminar ‘Fighting the Next Financial Crisis’

On 2 October 2019, the Florence School of Banking and Finance organised an online seminar entitled ‘Fighting the Next Financial Crisis’, which focused on the latest research efforts undertaken in academia to identify the methodologies and tools that will be used to contrast future financial crises.

The main presentation was delivered by Andrew Metrick, the Janet L. Yellen Professor of Finance and Management at the Yale School of Management (SOM) and the Director of the Yale Program on Financial Stability. In his presentation, Professor Metrick described Yale’s “The New Bagehot Project”, a project launched in 2017 that aims to expand the crisis-fighting playbook through detailed case studies of specific interventions, synthesizing these case studies into best practices, and then presenting this synthesis across a variety of media. Unlike other research efforts, which focused on macroeconomic issues, this project pays specific attention to the mechanics of crisis-fighting tools. The project will draw a collection of best practices from a wide number of case studies, finally presenting this synthesis across a variety of media.

Professor Metrick’s presentation was followed by a comment delivered by Loriana Pelizzon, Program Director of the Research Centre SAFE Systemic Risk Lab and SAFE Full Professor at Goethe University Frankfurt, Chair of Law and Finance. She is also part-time Full Professor of Economics at the Ca’ Foscari University of Venice and Research Affiliate at MIT Sloan. In her comment, Professor Pelizzon highlighted the need for more attention on the mechanics of crisis-fighting tools. In particular, she presented her research on how these tools can have unintended consequences, describing the case of central bank-driven mispricing in the case of the ECB’s quantitative easing, and the effect on the firms’ debt structure decision of the ECB Eligibility and treatment of Corporate Debt Supply.

Download the slides by Andrew Metrick