This is a past event
Part of the Global Economic Governance programme at University College, Oxford.
Macer Gifford will present a paper giving a practioner’s insight into the role of liquidity in the pricing of loans and in the overall stability of the financial sector. He focuses on the pending liquidity regulation and provocatively asks if it is useful at all. Does the regulation reduce the reduce the risk of “it” ever happening again, or does it simply move the risk elsewhere whilst increasing financial frictions and so retarding growth?
Macer’s paper is organised in four parts. (i) It sketches out a simple methodology for how banks should price long term loans. (ii) It finds that the existence of a liquidity premium in this methodology could create the incentive for an inherently unstable financial system. (iii) It argues that the regulatory response to this instability is confused; substantially increases the liquidity premium and significantly impacts economic growth. (iv) The paper concludes that the regulatory response is misconceived and proposes an alternative approach.
Macer Gifford is a Visiting Fellow in the Globalization and Finance Project, a joint project between GEG and the Blavatnik School of Government. Macer is on sabbatical from Standard Chartered Bank.
Discussants:
Alan Morrison, Professor of Finance at Said Business School, Oxford
Lord Robert May, Professor of Zoology, Oxford, whose recent research includes work with the Bank of England on “stability and complexity in ecosystems”.
More details here.
- Speaker
- Macer Gifford
- Hosted by
- University College, Oxford
- Venue
- Swire Seminar Room, 12 Merton Street, Oxford
- Contact