Remaking
finance
REMAKING
FINANCE
More than a decade after the financial crisis there still seems to be something seriously wrong with the financial system. Financial markets still tend to periodically misprice risk and contribute to boom and bust cycles. A better financial system needs to discourage short-termism and speculative activity, curtail systemic risk and distribute wealth more broadly.
LATEST NEWS
The bankers‘ new clothes with Martin Hellwig – Why banks are still dangerous
The bankers‘ new clothes with Martin Hellwig – Why banks are still dangerous
KNOWLEDGE BASE
REMAKING
FINANCE
The Challenge
The 2008 Global Financial Crisis was the worst economic crisis since the Great Depression and the world still suffers from systemic financial instability.
What Went Wrong
The efficient market hypothesis stipulated that bubbles could not exist and that the market is the best disciplining device.
New Economy in Progress
A better financial system needs to counter herding, booms and busts and the inherent tendency towards instability.
5 WAYS THAT ARE DISCUSSED TO REMAKE FINANCE
FINANCIAL CRISES IN ADVANCED ECONOMIES, 1870-2015
The bankers‘ new clothes with Martin Hellwig – Why banks are still dangerous
New Economy Short Cut Re-live: Reducing Government Debt, But How?
Do austerity programs actually fulfill their purpose of reducing government debt? We discussed this with IMF economist Adrian Peralta-Alva, Achim Truger and Philippa Sigl-Glöckner on May 31.
Reducing Government Debt, But How? When Consolidation Helps and When It Doesn't
Book presentation: How companies can deliver both purpose and profit
Alex Edmans, finance professor at LBS, argues that companies should be run with the primary purpose of creating value for society (and profits secondary) and provides evidence that this is more profitable in the long run. Jointly with ESMT Berlin, we have invited him to present his 2020 book and to discuss how companies can best serve society.
On climate, jobs and financial stability: Towards a new mandate for central banks?
Whether the ECB needs a new mandate was discussed on the VIII. New Paradigm Workshop by Isabel Schnabel, Adam Tooze, Moritz Schularick, and Laurence Tubiana.
OTHER MAIN TOPICS
New Paradigm
NEW PARADIGM
After decades of overly naive market belief, we urgently need new answers to the great challenges of our time. More so, we need a whole new paradigm to guide us. We collect everything about the people and the community who are dealing with the question of a new paradigm and who analyze the historical and present impact of paradigms and narratives – whether in new contributions, performances, books and events.
Redefining
the role of
the state
REDEFINING
THE ROLE OF
THE STATE
For decades, there was a consensus that reducing the role of the state and cutting public debt would generate wealth. This contributed to a chronic underinvestment in education and public infrastructure. New research focuses on establishing when and how governments need to intervene to better contribute to long-term prosperity and to stabilize rather than aggravate economic fluctuations.
Greening
prosperity
GREENING
PROSPERITY
During the high point of market orthodoxy, economists argued that the most 'efficient' way to combat climate change was to simply let markets determine the price of carbon emissions. Today, there is a growing consensus that prices need to be regulated and that a carbon price on its own might not be enough.
Reducing
inequality
REDUCING
INEQUALITY
The rising gap between rich and poor has become a threat to social cohesion in most rich countries. To reverse this trend it will be crucial to better understand the importance of different drivers of income and wealth inequality.
Innovation Lab
INNOVATION LAB
Do we need a whole new understanding of economic growth? What would be a real alternative? How viable are alternatives to GDP when it comes to measuring prosperity? These and other more fundamental challenges are what this section is about.
Globalization
for all
GLOBALIZATION
FOR ALL
After three decades of poorly managed integration, globalization is threatened by social discontent and the rise of populist forces. A new paradigm will need better ways not only to compensate the groups that have lost, but to distribute the gains more broadly from the start.
Europe
beyond markets
EUROPE
BEYOND MARKETS
The euro was planned during a period in which economic policy making was driven by a deep belief in market liberalism and the near impossibility of systemic financial crises. This belief has been brought into question since the euro crisis, which showed that panics do happen. New thinking needs to focus on developing mechanisms to protect eurozone countries from such panics and to foster economic convergence between members.
Corona Crisis
CORONA CRISIS
The current Corona crisis is probably the worst economic crisis of the post-World War 2 era. Economists are working hard on mitigating the economic effects caused by COVID-19 to prevent a second Great Depression, the break-up of the Eurozone and the end of globalisation. We collect the most important contributions.