Schumpeter, Minsky, and the FCA: Exploring the links between financial regulation, growth, and stability

Event

Summary
Date: 
June 9th 2017 to June 10th 2017
Time: Day 1: 12.00-18.30 / Day 2: 9.00-17.00
Venue: Room 9.04, Tower 2, LSE (map)
 
Organisers: Kevin James (FCA, SRC, FMG, LSE) and Jon Danielsson (SRC, LSE)
 

The effectiveness of a country’s financial markets profoundly affects its overall economic performance, and the quality of a country’s financial regulatory regime in turn significantly influences market effectiveness (for better or worse). It follows that financial regulation offers a channel through which regulators can (at least in theory) improve both growth and financial stability. In this conference we will explore how we can exploit this MacroConduct channel. 

We focus on:
• Corporate governance, regulation, and economic performance
• The Minsky hypothesis
• Asset management and financial stability

Ross Levine (UC Berkeley) delivered the keynote address on "Regulating for Prosperity". Other speakers included Colin Mayer (Oxford), Youfei Xiao (Duke), and Kevin James (FCA/LSE) on corporate governance, Jon Danielsson (LSE) and Isabelle Roland (LSE) on the Minsky hypothesis, Yuliya Baranova (Bank of England), Luis Brandao (IMF) and Robert Taylor (FCA) on asset management and financial stability, Cindy Alexander (SEC) on the value of securities regulation, and Peter Rousseau (Vanderbilt) on a key 19th century episode of regulating for prosperity. 

Materials available for download:

 
 

Peter Rousseau (Vanderbilt)
The Life and Legacy of the Second Bank of the United States - slides
Discussant: Claudia Robles-Garcia (LSE) - slides

Kevin James (FCA/LSE)
Market Quality, Financial Crises, and TFP Growth in the US: 1840–2016 - slides
Discussant: Ali Kabiri (LSE) - slides

Youfei Xiao (Duke)
Corporate Governance Data and Measures Revisited - slides
Discussant: Tom Kirchmaier (LSE) - slides

Colin Mayer (Oxford)
The Evolution of Ownership and Control Around the World: The Changing Face of Capitalism - slides
Discussant: Kevin James (FCA/LSE) - slides

Jon Danielsson (LSE)
Learning From History: Volatility and Financial Crises - slides
Discussant: Nicola Limodio (LSE) - slides

Isabelle Roland (LSE)
The Aggregate Effects of Credit Market Frictions: Evidence from Firm-level Default Assessments - slides
Discussant: Rebecca Riley (NIESR) - slides

Ross Levine (UC Berkeley) - Keynote speaker
Regulating for Prosperity - slides

Cindy Alexander (SEC)
Informational Value of US Securities Registration: Evidence From Secondary Public Offerings, 1994-2016
Discussant: Plamen Ivanov (FCA)

Luis Brandao (IMF)
Asset Management and Financial Stability: Recent Insights - slides

Yuliya Baranova (Bank of England) and Laura Silvestri (Bank of England)
Simulating the Effect of Stress on Market Liquidity

Robert Taylor (FCA)
Supervision of Liquidity Management at the Coalface

Twitter hashtag: #LSEFinancialRegulation
 

The event was supported by the Financial Conduct Authority.