Preparing for the Next Financial Crisis
Policies, Tools and Models

This book uses perspectives of finance and banking to offer predictions on future financial crises, and how we can prepare for them.

Esa Jokivuolle (Edited by), Radu Tunaru (Edited by)

9781107185593, Cambridge University Press

Hardback, published 16 November 2017

202 pages, 14 b/w illus. 11 tables
23.5 x 15.6 x 1.5 cm, 0.4 kg

In the years since the subprime financial crisis of 2007–2011, we have learned a number of important lessons about the crisis, and have subsequently applied appropriate legislation, such as increased capital ratios and systematic stress testing, in order to combat it. However, it would be naive to suggest that such measures have put an end to the possibility of future crises. In this book, senior figures in economics, risk Management, and the banking sector use active research and policy debates to offer a wide perspective on what the next financial crisis may look like and what can be done about it from a regulatory point of view. By first exploring issues of macroeconomic policy, and then studying cutting-edge methodologies, challenging important aspects of testing financial practice, this book will be an essential read for all those studying and researching financial crises, financial regulation and macroprudential policy-making.

1. Introduction
2. Non-standard monetary policy and financial stability: developing an appropriate macro-financial policy mix
3. Financial innovation and financial stability: an introduction
4. Post-crisis changes in US bank prudential regulation
5. Financial markets and policy through the lens of macroeconomics
6. Investment doctrines for banks, from real bills to post-crisis reforms
7. Stress testing in banking: a critical review
8. Making sense of the EU wide stress test – comparing SRISK and the ECB/EBA measures of bank vulnerability.

Subject Areas: Finance [KFF], Economic & financial crises & disasters [KCX], International economics [KCL], Economic forecasting [KCJ]