Central Banking & Financial Stability
Financial crises often have severe knock-on effects, precipitating dislocation in the economy, in the political sphere, and in society at large. A primary responsibility of regulatory authorities is thus to ensure the resilience and stability of the financial system. Yet fulfilling this mandate requires regulators to take a big-picture approach comprising various domains of policy action, for the factors that can impact financial market stability are diverse and often mutually interdependent. These factors include the structures and processes that shape the behavior of financial-market institutions and service providers. In addition, regulators must consider how developments in financial markets interact with trends in the real economy as they monitor the impacts of monetary policy decisions. A crucial element of financial market stability is the work of central banks, which assume various macroprudential responsibilities as custodians of the currency. Accordingly, in addition to assessing monetary policy, House of Finance researchers study the ways that the mandate, governance mechanisms, and policy instruments of central banks affect financial market stability. Our research in the domain of central banking and financial stability leverages a unique blend of financial, macroeconomic, and legal expertise.
Activities at the House of Finance
The supervisory response to the March 2023 bank runs has been criticized for excessive…
The supervisory response to the March 2023 bank runs has been criticized for excessive inertia, with regulatory forbearance often leading to worse losses and chaotic defaults, leaving…
IMFS Working Lunch on the topic "Geopolitical Risk: Implications for Financial Stability".…
IMFS Working Lunch on the topic "Geopolitical Risk: Implications for Financial Stability". Hörsaalzentrum, HZ 13, Campus Westend, Goethe-Universität Frankfurt.
We build a macro-finance model with an occasionally binding financing constraint where…
We build a macro-finance model with an occasionally binding financing constraint where real interest rates have opposite effects on current and future financial stability, with the…
In his Public Lecture, Rui R. Esteves, currently Visiting Professor of Financial History…
In his Public Lecture, Rui R. Esteves, currently Visiting Professor of Financial History at the House of Finance, used a long-term data set to demonstrate the characteristics and framework…
In her keynote speech at the House of Finance New Year's Retreat, Fritzi Köhler-Geib,…
In her keynote speech at the House of Finance New Year's Retreat, Fritzi Köhler-Geib, Member of the Executive Board of the Deutsche Bundesbank, highlighted the importance of research for her…
The Institute for Law and Finance’s 13th Conference on the Future of the Financial Sector…
The Institute for Law and Finance’s 13th Conference on the Future of the Financial Sector will be held on a hybrid basis on the Westend Campus of Goethe University in Frankfurt on Friday,…