The COVID-19 crisis is stress-testing not just economies, but our economic paradigms and analytical tools. The 2008 crisis revealed that financial systems are networks, and COVID-19 showed how viral contagion and conventional tools (monetary creation) plus lockdowns can bring on recession, depression or conflict. Current single-minded focus on flows and monetary creation to deal with …

Andrew Sheng: New Data, New Systemic Analyses for Novel Pandemic Crises Read More »

Money is hierarchical and during crises, rules are flexible at the core and rigid at the periphery. In this crisis, the penalty rate part of Bagehot’s rule was replaced with “friendly” rates for the core – with Covid-19 there is no moral hazard in lending to the core of the system at low rates. (...) …

Zoltán Pozsár: Financial stability in the age of Covid-19 Read More »

The lockdown continues and so does our research, but you are not alone in this! After one week of pause, join the Finance, Law and Economics Working Group for its third meetup on Wednesday, April 29th at 5 pm CET.In the next meetup, we will discuss with Arletta Gorecka about her research on the challenges …

3rd YSI/FLE Meetup Read More »

For several years Geoff Mann has been thinking about the political-economic and geopolitical futures that might emerge in world subject to extreme climate change (especially in collaboration with Joel Wainwright). While the urgency of the climate challenge has not diminished, the coronavirus pandemic, and the wide range of responses on the part of various states …

COVID19 and Climate Change Read More »