Origins of and Responses to the Ongoing Financial Market Crisis

Speaker: Klaus Regling, EU Fellow, Lee Kuan Yew School of Public Policy, Senior Advisor, European Commission

The United States is in the middle of the most serious financial market crisis of the last 75 years with significant spillovers to Europe and growing implications for the rest of the world. Financial market crisis happen frequently. But why is the current crisis so deep, long-lasting and wide-spread? The speaker will argue that the last 10 15 years have been characterized by a rather unusual combination of a large number of macro-economic and structural developments and trends that had a significant impact on the functioning and the structure of financial markets. These developments and trends happened simultaneously and included: generous liquidity creation, a long period of low interest rates, large current account imbalances, the (temporary) dis-inflation impact of globalisation, the growing importance of the originate-and distribute model and the development of highly complex instruments, the evolving role of credit rating agencies, distorted compensation incentives for bank managers, the lack of a comprehensive macro-prudential approach in financial market supervision, and the pro-cyclicality of certain valuation requirements. Klaus Regling will also give an overview of the response to the crisis so far from public authorities (central banks, governments, supervisors, European Commission) and the industry itself.

Category:

Education

Tags:

• LKYSPP
• NUS

[makeiteasyable]

ang saya saya matagal lang matapos.

[prasetyowibisono]

Great lecture