Yale Program on Financial Stability to Advance Research and Regulator Training in Systemic Risk
Yale SOM has launched the Yale Program on Financial Stability to provide research and training to regulators in the new field of macroprudential financial regulation, which focuses on measuring and managing systemic risk in financial markets.
New Haven, Conn., August 12, 2013 –The Yale School of Management has launched the Yale Program on Financial Stability to provide research and training to regulators in the new field of macroprudential financial regulation, which focuses on measuring and managing systemic risk in financial markets.
The non-partisan program, established with a grant from the Alfred P. Sloan Foundation, is directed by Andrew Metrick, deputy dean and Michael H. Jordan Professor of Finance and Management. “There is a major push in macroprudential regulation at agencies all over the world,” said Metrick, who served as chief economist of President Obama’s Council of Economic Advisers in 2010. “While these agencies have enormous new responsibilities to look out for systemic risk, no one has been trained to do the job because the training hasn’t existed, and we don’t have good translations of the limited academic work that is available for regulators who are on the frontlines. That’s the big gap that this program will fill.”
The program’s activities include four interrelated initiatives: the Systemic Risk Institute, an annual program for economists working in macroprudential roles in regulatory agencies and central banks; an annual conference and related publication of papers from leading scholars that bridge theory and practice; the creation of “raw” case studies based on primary source material that will document the interaction of firm behavior and financial regulation; and outreach to regulatory agencies to include these case studies as part of their in-house training programs.
The inaugural Systemic Risk Institute will take place in July 2014 on the Yale campus, where 12 scholar-regulators from major agencies around the world will gather for two weeks for in-depth analysis of detailed case studies on key topics of financial stability. The Institute will be co-directed by Metrick and Gary Gorton, Frederick Frank Class of 1954 Professor of Management and Finance at Yale SOM, with assistance from other Yale faculty and invited experts from the regulatory, scholarly, and practitioner communities. On its final day, the Institute will host a translational-research conference on bank capital with proceedings to be published in a major academic journal.
The YPFS advisory board is drawn from the academic and regulatory communities and is chaired by Austan Goolsbee, Robert P. Gwinn Professor of Economics at the University of Chicago Booth School of Business and past chairman of the Council of Economic Advisers. Other advisory board members are Stijn Claessens, assistant director in the Research Department, International Monetary Fund; Anthony Dowd, treasurer and secretary, the Volcker Alliance; Luca Enriques, professor of business law, LUISS University; Roger Ferguson, president and CEO of TIAA-CREF and past vice chairman of the Federal Reserve; Eilis Ferran, professor of company and securities law, University of Cambridge; Michael Greenstone, 3M Professor of Environmental Economics, Massachusetts Institute of Technology; Richard Herring, Jacob Safra Professor of International Banking, University of Pennsylvania; Xiaolian Hu, deputy governor, People’s Bank of China; Adam Posen, president of the Peterson Institute for International Economics and past member of the Monetary Policy Committee of the Bank of England; Roberta Romano, Sterling Professor of Law, Yale University; Nancy Rose, Charles P. Kindleberger Professor of Applied Economics, Massachusetts Institute of Technology; and David Scharfstein, Edmund Cogswell Converse Professor of Finance and Banking, Harvard University.
For more information on the Yale Program on Financial Stability, please visit som.yale.edu/ypfs.
About the Yale School of Management
The Yale School of Management attracts broad-minded, intellectually curious students and faculty. An integrated curriculum, close ties to Yale University, and an active connection to the Global Network for Advanced Management ensure that Yale MBAs not only acquire crucial technical skills but also develop a genuine understanding of an increasingly complex global context. Yale MBAs assimilate information and ideas from multiple sources, functional areas, and points of view to lead effectively in all regions and sectors. Yale SOM offers a full-time MBA program, as well as an EMBA, Master of Advanced Management, and PhD. som.yale.edu.
About the Alfred P. Sloan Foundation
The Alfred P. Sloan Foundation is a philanthropic, not-for-profit grant making institution based in New York City. Established in 1934 by Alfred Pritchard Sloan Jr., then-President and Chief Executive Officer of General Motors, the Foundation makes grants in support of original research and education in science, technology, engineering, mathematics and economic performance. http://www.sloan.org