Videos and Public Event Highlights
CEPR, together with the Brevan Howard Centre for Financial Analysis at Imperial College, organised the Tenth Annual Hedge Fund Conference on 3 December 2015 to showcase state-of-the-art international research on major issues regarding hedge fund strategies in all asset classes and their impact on financial markets. It provided an essential meeting point for researchers, senior market participants and policy makers.
The programme, papers and interviews with the speakers can be found here.
Low for Long? Causes and Consequences of Persistently Low Interest Rates; 17th Geneva Report on the World
Presented by Sir Charles Bean
The 17th Geneva Report examines the causes of the unusually low interest rates seen in recent years, asks whether they are likely to persist, and explores the possible consequences should that happen.The Report argues that demographic developments and Chinese financial integration have been important drivers of low rates, reinforced since the crisis by a reluctance to invest and a shift in investor preferences towards safe assets. But some of these forces are likely to reverse in the future, suggesting that the current period of unusually low interest rates is unlikely to persist indefinitely. The pace at which that reversal will happen remains highly uncertain, however, and dependant on longer-term policy choices.
The return to historically more normal levels of interest rates may consequently be quite drawn out and policy makers need to be alert to the consequences. Aside from increasing the frequency with which monetary policies are constrained by the lower bound on policy rates, persistently low interest rates on safe assets also encourage the adoption of strategies to lever up returns, so heightening the risks to financial stability. While macroprudential policies represent the first line of defence against such risks, policy makers should be careful not to expect too much from them.
The Financial Regulatory Initiative is designed to encourage and coordinate academic research on the design of financial regulation. Currently, much of the regulation that is being done is not based on a sound academic framework and much work is needed to create this.
There are five work streams in the initiative:
(i) Banking and Capital Markets;
(ii) Long Term Financing of Industry;
(iv) Real Estate;
(v) Household Finance.
The first workshop took place on 30 September 2015 in London and introduced some of the important topics to guide policymakers in designing financial regulation. Video highlights from Enrico Perotti, Ignazio Angeloni, Elena Carletti, Tom Huertas, Andrea Polo, Diego Valiante, Kevin Ingram, Ralph Koijen, Nick Scarles, Michael Haliassos, Franklin Allen and Douglas Gale.
This high level conference was held on Monday 18 May 2015, organized by the Brevan Howard Centre for Financial Analysis at Imperial College London Business School, the Centre for Economic Policy Research and the Swiss National Bank. The keynote speeches were given by Kenneth Rogoff of Harvard University and Willem Buiter of Citigroup. These were followed by three panels, one on Market Participant Views, one on the Economic, Financial Legal and Practical Issues, and one on Central Bank Views.
Piketty shows that modern economic growth and the diffusion of knowledge have allowed us to avoid inequalities on the apocalyptic scale predicted by Karl Marx. But we have not modified the deep structures of capital and inequality as much as we thought in the optimistic decades following World War II. The main driver of inequality--the tendency of returns on capital to exceed the rate of economic growth--today threatens to generate extreme inequalities that stir discontent and undermine democratic values.
Each speaker gave a 30 minute talk addressing the issues raised in Piketty’s work, followed by a 15-minute response from Thomas Piketty and a further 15 minutes of open floor discussion.