Have you always wondered why financial crises occur and whether we can prevent them? What does financial stability mean and why has it recently become another official objective of central banks in addition to price stability? What is macroprudential policy, why and how it differs from the traditional financial regulation, who is responsible for it, and what instruments are used? And why do central banks often limit the growth of mortgage lending to mitigate systemic risk?
In the Summer Semester 2021/2022, we are opening a new Master-level course JEM228 Systemic Risk and Macroprudential Policy, which deals with these questions and which is classified as elective (“povinně volitelný”) for all Master programs at IES and all specializations. We are going to cover how financial risks evolve over the business and financial cycle, what risks stem from the development of real estate markets, analytical tools used in this area (e.g., early warning system, stress testing), as well as objectives and instruments of macroprudential policy such as countercyclical capital buffers for banks or limits on loan-to-value (LTV) a debt-service-to-income (DSTI) ratios for mortgage loans.
The course lectures will be held each Monday at 2 pm in the room 314 and hands-on tutorials each Wednesday at 11 am (both also broadcasted via Zoom), where we will analyze data for selected countries. Course requirements are (i) five short homework assignments on the topics covered by lectures and analytical tools practiced at tutorials, (ii) final open-book online test.
The course will be delivered by Adam Geršl, who is – next to the role of Director of Master Program at the IES and lecturer of the course on Banking – an acknowledged international expert in the area of financial stability and macroprudential policy, with long lasting experience from the Czech National Bank, European Central Bank, World Bank, and International Monetary Fund, where he continues to serve as a consultant.
Doc. Adam Geršl still accepts students interested in writing their master thesis on a topic related to financial stability, financial crises and macroprudential policy. For topics offered see his personal webpage here.
We invite all interested students and faculty for a lecture by Christian Schmieder (IMF) on the topic Toward Operationalizing Macroprudential Policies: When to Act? This guest lecture is organized within the course Financial Markets and is scheduled for Tuesday, 6 December 2011 at 3:30 pm in room 314. Christian Schmieder will present the third chapter of the September 2011 issue of the IMF Global Financial Stability Report of which he is a co-author.