Financial Crisis

The Toulouse School of Economics is privileged to host a world-level research team in finance. Research undertaken at TSE in financial economics includes market finance, corporate finance, market micro-structure, prudential regulation and the two-way interaction between finance and the macro-economy (for example TSE is known for its work on liquidity, an issue that figured prominently in the recent financial crisis). Together with partners such as the Banque de France, AXA, SCOR, CDC, and other public and private partners, TSE regularly organizes academic conferences in order to gather renowned economists and decision makers around topical issues in financial economics. For example, the workshop "monetary policy in the current crisis" took stock of the challenges faced by the central banks since the summer of 2007 and suggested innovative policy responses. The April 2010 conference focused on the political economy of the ongoing global financial crisis: regulatory capture and lobbying, bailout negotiations, consumer protection.

In December 2008, TSE organized a conference on the financial crisis at the French Ministry of Finance with the attendance of the French minister of economy, Christine Lagarde, and took this opportunity to launch a new series, the “TSE notes”, the first two issues thereof focusing on the crisis. In the first such monograph, Jean Tirole examined the unfolding of the crisis, the reforms to be undertaken to prevent repeats, and the design of global financial institutions to this purpose.

In the second monograph, Jean-Charles Rochet analyzed the recent prudential initiative, and cast a critical eye on the Basel II reforms. These contributions, together with a third piece by Jean-Charles Rochet and Mathias Dewatripont, will appear in English in a three-author book entitled “Balancing the Banks” (Princeton University Press, 2010).


The Monetary Policy in the current crisis - Paris, March 20, 2009

Both the speed and the scale of the financial crisis and of its transmission to the real economy have surprised many observers, leading central banks to intervene massively after the crisis unfolded and forcing them to adapt their operational, and eventually their strategic, frameworks. The purpose of the joint workshop organised by the Banque de France and the Toulouse School of Economics (TSE) on 20 March 2009, entitled "Monetary policy in the current crisis", was to take stock of the issues central banks have been facing since the summer 2007 and of the challenges ahead. In addition, it aimed at better understanding the transmission mechanism of financial shocks to the real economy.

This conference was part of the long-term partnership between TSE and Banque de France to strengthen monetary and financial stability research in areas of critical importance for central banks.

The following scholars presented their research or their own experience in this field: James Bullard (Federal Reserve Bank of Saint Louis), Ulrich Kohli (Swiss National Bank), George Pauget (Credit Agricole), Franck Smets (ECB), Tobias Adrian (FED of New York), Patrick Pintus (Aix-Marseille University), Roberto Motto (BCE), Massimo Rostagno (ECB).

International Conference on “Extreme Events” Paris, September 3, 2008

Extreme events, or worse-case scenarios, are difficult to analyse from an economic perspective. Nonetheless, they do exist and are an important concern for public policy. The fight against global warming is mainly driven by the desire to prevent its far-reaching and catastrophic effects on the world's environment. Financial crises too can be analysed as "catastrophes", i.e. as sudden breaks or discontinuities in developments in financial systems.

Extreme events are seldom factored into the models used in macroeconomics, finance and environmental economics. From an operational point of view, they are hardly incorporated into the usual risk management tools used by financial institutions, market participants and regulators.

In order to contribute to the academic and policy research on these topical issues, the Toulouse School of Economics (TSE) and the Banque de France (Financial Stability Directorate) jointly organized an international conference on extreme events.

The conference aimed to discuss recent improvements achieved both in the understanding and the modelling of extreme risks. It is also examined the issues related to various economic phenomena such as the repetition of financial crises and the emergence of new risks (e.g. the catastrophic effects of climate change, pandemics, and scientific, technological and terrorist risks).

This conference was also part of a wider and longer-term partnership between TSE and the Banque de France aimed at developing economic and financial research in fields relevant for central banks.

 Programme

Risk Management after the crisis

01/02/2011

April 6-7, 2011

This conference, sponsored by the European Research Council and the SCOR, will bring together academics (from HEC, INSEAD, TSE, Oxford, MIT, CEMFI, Maryland, UCLA, Wisconsin, Zürich, ...) and practitioners (from ECB, SCOR, Rio Tinto, Banque de France, ...) to discuss issues related to risk-management, risk-taking, financing, liquidity and crisis.  The goal is to analyze the economic driving forces underlying these phenomena, and to discuss private and public policy responses.

Conference on the Political Economy of the Financial Crisis, Toulouse, France, April 9, 2010

09/04/2010

Organized by Augustin Landier in Toulouse

The aim of this conference was to contribute to the debate on the political economy aspects of the ongoing global financial crisis, and to stimulate research in this area. Topics that were discussed include: regulatory capture and lobbying, bailout negotiations, and consumer protection. The conference was co-sponsored by the European Banking Center (EBC) at Tilburg University and the Toulouse School of Economics (TSE).