Publications

The Centre has a regular discussion paper series dedicated to academic research, as well as a special paper series focused on policy analysis. In addition, affiliated researchers publish a variety of books, reports and opinion pieces.

Discussion Papers
Sep 2013
DP 3
We present a model of an economy with heterogeneous banks that may be funded with uninsured deposits and equity capital. Capital serves to ameliorate a moral hazard problem in the choice of risk. There is a fixed aggregate supply of bank capital, so...
Discussion Papers
Sep 2013
DP 2
Financial market liquidity has become increasingly fragmented across multiple trading platforms. We propose an intuitive welfare-based market quality metric that can properly aggregate local market conditions across both securities and trading...
Opinion Pieces
Sep 2013
Central banks frequently lead the macroprudential policy implementation. The hope is that their credibility in conquering inflation might rub off on macroprudential policy. This column argues the opposite. The fuzziness of the macroprudential agenda...
Discussion Papers
Sep 2013
DP 1
Tobias Adrian and Hyun Song Shin
The availability of credit varies over the business cycle through shifts in the leverage of financial intermediaries. Empirically, we find that intermediary leverage is negatively aligned with the banks’ value-at-risk (VaR). Motivated by the...
Books
Aug 2013
The book uses economic theory, finance, mathematical modelling, risk theory, and policy to posit a comprehensive, coherent and current economic analysis of the inherent instabilities of the financial system and the design of optimal policy responses...
Opinion Pieces
May 2013
Icelandic voters recently ejected its post-Crisis government – a government that successfully avoided economic collapse when the odds were stacked against it. The new government comprises the same parties that were originally responsible for...
Opinion Pieces
Mar 2013
One aspect of the Cypriot crisis resolution is of particular concern. As authorities fear that anyone with money in Cyprus will want to take it out as soon as banks open, capital controls are being put in place. We are told they will be limited in...
Opinion Pieces
Mar 2013
Cyprus has imposed temporary capital controls. This column sheds light on how temporary and how damaging they are likely to be, based on Iceland’s experience. The longer controls exist, the harder they are to abolish. Icelandic capital...
Opinion Pieces
Mar 2013
Is the fact that different banks have different risk models problematic? Contrary to the Basel Committee and the European Banking Authority, this column argues that heterogeneity is a good thing. It leads to countercyclicality, and thereby reduces...
Reports
Jan 2013
Sir John Beddington, Dame Clara Furse, Philip Bond, Dave Cliff, Charles Goodhart, Kevin Houstoun, Oliver Linton and Jean-Pierre Zigrand
SRC researchers were involved in a study that explores how computer generated trading in financial markets will evolve over the next 10 years. The project was led by the Government Office for Science. The final project report can be found on the...

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