Brown Bag Seminar
The Finance Brown Bag Seminar is held jointly with the Vienna Graduate School of Finance (VGSF) and serves as a presentation platform for PhD students, faculty members, and visitors. It usually takes place on Wednesdays from 12:00 to 13:00 (location tba). For further information, please contact email@example.com
Winter Term 2018
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 "
Abstract: 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.