SAFE Policy Lecture: Markus Brunnermeier
Title: Financial Dominance, Safe Assets and Global Reserve Holdings
Should we tolerate financial dominance to ensure that government debt stays default free in order to preserve its safe asset status? Are Sovereign Bond Backed Securities (SBBS) in form of ESBies the golden way out for Europe allowing insurance and safe assets at the same time? Can global SBBS help to reshape the global financial architecture by providing an alternative to distortionary excessive reserve holdings by Emerging Market Economies?
Markus K. Brunnermeier is a faculty member of the Department of Economics at Princeton University and director of its Bendheim Center for Finance. He is the founding and former director of Princeton’s Julis Rabinowitz Center for Public Policy and Finance and affiliated with the International Economics Section. He is also a research associate at NBER, CEPR, and CESifo. He is/was a member of several advisory groups, including to the IMF, the Federal Reserve of New York, the European Systemic Risk Board, the Bundesbank and the U.S. Congressional Budget Office. Brunnermeier was awarded his Ph.D. by the London School of Economics (LSE).
His research focuses on international financial markets and the macroeconomy with special emphasis on bubbles, liquidity, financial and monetary price stability. He is a Sloan Research Fellow, Fellow of the Econometric Society and the recipient of the Bernácer Prize granted for outstanding contributions in the fields of macroeconomics and finance. He received a Guggenheim Fellowship for studying the impact of financial frictions on the macroeconomy. He has been awarded several best paper prizes and served on the editorial boards of several leading economics and finance journals. He has tried to establish the concepts: liquidity spirals, CoVaR as co-risk measure, the Volatility Paradox, Paradox of Prudence, ESBies, financial dominance and the redistributive monetary policy. His recent book is titled "The Euro and the Battle of Ideas".