Our speaker will be

Carlos Ramirez

(Board of Governors of the Federal Reserve System).

He will give a talk on "Regulating Complex Financial Networks".

The talk will take place at 12:00-13:00 in seminar room D4.0.019.

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.