Financial stability in times of high inflation (VaM)

What are the current threats to financial stability? Are those a by-product of the pandemic crisis, are they due to the recent rise of inflation in all advanced economies (albeit at varying pace), or are they to be attributed to a combination of both? 

 

Professor Gortsos will discuss this topic by first, briefly reviewing the evolution of financial stability conditions just before and during the first phases of the pandemic crisis (2020-2021). His main argument is that, even though the overall resilience of the financial system was (on average) strong, financial stability vulnerabilities remained elevated (for reasons to be developed). 

 

He will, then, focus on the causes of the global “inflation crisis”, which broke out in mid-2021, on the monetary policy measures adopted by central banks, in quite a synchronised way, to contain inflation, and on the extent to which the effects of monetary policy tightening are compromised by unwarranted expansive fiscal policy measures. This will pave the way for sharing some thoughts on the threats to financial stability under the current economic conditions and their link to the vulnerabilities which were present before the outbreak of the inflation crisis.

 

Informationen zum Referent
Christos Gortsos has a tenured position as Professor of Public Economic Law at the Law School of the National and Kapodistrian University of Athens (NKUA). During the Academic Year 2022-2023, he is Visiting Scholar at the Faculty of Law of the University of Zürich and Senior Fellow at the Collegium Helveticum (a joint Institute of Advanced Studies of the ETH Zürich, the University of Zürich and the Zürich University of Arts). Read more.