VGSF - WU Vienna - LC

Carlos Ramirez, Board of Governors of the Federal Reserve System

Campus WU D4.4.019 12:00 - 13:00

Organizer WU Vienna

The Fin­ance Brown Bag Sem­inar is held by the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance (WU Vi­enna) and the Vi­enna Gradu­ate School of Fin­ance (VGSF). It serves as a present­a­tion plat­form for PhD stu­dents, fac­ulty mem­bers, and vis­it­ors. An over­view of BBS on the web­site of the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance.


August 27th, 2018, 12:00-13:00, D4.0.019

Car­los Ramirez (Board of Gov­ernors of the Fed­eral Re­serve Sys­tem)
Title: "Reg­u­lat­ing Com­plex Fin­an­cial Net­works"


This pa­per ar­gues that the com­plex­ity of mod­ern fin­an­cial sys­tems can greatly re­duce the ab­il­ity of poli­cy­makers to im­prove in­vestors' wel­fare. Un­der some con­di­tions, poli­cy­makers may be in­cap­able of pre­vent­ing large cas­cad­ing fail­ures. In other cases, they can sig­ni­fic­antly im­prove in­vestors' wel­fare by im­pos­ing restric­tions on a small set of in­sti­tu­tions. Im­port­antly, the size of that set is jointly de­termined by the costs of restrict­ing in­sti­tu­tions, in­vestors' at­ti­tudes to­wards risk and am­bi­gu­ity, and the know­ledge avail­able to poli­cy­makers about the un­derly­ing struc­ture of such sys­tems.

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