IEO Seminar: Financial Stability - Imminent Risks, Predictable Crises, and What Policymakers Can Do

The IEO Seminar Series hosted a conversation with Professors Jon Danielsson (The London School of Economics and Political Science (LSE)) and Robin Greenwood (Harvard Business School) on Financial Stability: Insights on Imminent Risks, Predictable Crises, and What Policymakers Can Do.
Professor Danielsson delved into the dynamics of financial stability and the illusion of control arising from policies that focus on containing day-to-day risk, while neglecting the fundamental drivers of instability and crises. He discussed what regulation can, and cannot do, drawing insights from his latest book “The Illusion of Control.” Professor Greenwood talked about his groundbreaking work on “Predictable Financial Crises,” and how the predictability of crises favors an important role for preemptive actions including pro-active macro-financial policies to “lean against the wind” of credit market booms.
Helene Poirson (Advisor, Independent Evaluation Office of the IMF) moderated the event.