Maxwell Fry Global Finance Lecture: Financial Development and Financial Stability: Lessons from a Euro area Banking Crisis
Beschreibung
Speaker: Panicos Demetriades (Professor of Financial Economics, University of Leicester)The lecture will provide a bird’s eye view of fifty years of accumulated knowledge on financial development and its uneasy relationship with financial stability. Its starting point will be the McKinnon-Shaw model that was popularized by Maxwell Fry in the late 1980s. It will continue with the literature on the finance-growth nexus that emerged in the 1990s and its more recent breakdown, which coincided with the onset of the global financial crisis. It will put forward three inter-related reasons behind the breakdown of the finance-growth nexus, all of which help to explain why monetary and financial policies paid insufficient attention to financial stability.
The second part of the lecture will draw lessons from the recent banking crisis in Cyprus, which constitutes an important case study of the breakdown of the finance-growth nexus. The analysis will draw on the speaker’s unique personal insights during his period as Governor of the Central Bank of Cyprus, which are included in his forthcoming book A Diary of the Euro Crisis in Cyprus: Lessons for Bank Recovery and Resolution, Palgrave-Macmillan.
Veranstalter
G12 Main Lecture Theatre University House Birmingham Business School17:15-18:30
