Measuring and mitigating systemic risks: how the forging of new alliances between central bank and academic economists legitimize the transnational macroprudential agenda

Thiemann, Matthias; Melches, Carolina Raquel; Ibrocevic, Edin

doi:10.1080/09692290.2020.1779780

Cited by 28 publications

(25 citation statements)

References 85 publications

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“…An important new prism for interpreting these demands is the financial stability mandate central banks acquired immediately after the financial crisis of 2007-2008(McPhilemy and Moschella, 2019; Thiemann, 2019. Through this shift in their mandate, central banks were suddenly charged with monitoring financial stability risks in the financial system and were encouraged to develop mitigating and adaptive tools for these issues (Thiemann et al, 2021). In this context, a new network of change agents emerged around macroprudential regulation, which was to become an important mediating factor in transforming societal demands on climate change into central bank policy (see Siderius, 2022).…”

Section: The Inevitable Repoliticization Of Central Bankingmentioning

confidence: 99%

Beyond market neutrality? Central banks and the problem of climate change

2023

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Starting with a landmark 2015 speech by Mark Carney on the ‘Tragedy of the Horizon’, climate change entered central banking discourse, causing some of its key convictions to come under new scrutiny. This article traces how initially climate change was firmly embedded in a conventional framework of ‘market completion’ that would allow financial markets to price in the negative externality. Yet, over the course of the last seven years, central banks have repositioned their role regarding this problem, taking on a much more active stance which calls into question the notion of ’market neutrality’. To trace these discursive changes, this article identifies three discursive layers formed around market-based mechanisms, responsible investment and monetary policy. We show that in the unfolding of the debate, the issue of climate change has altered the self-understanding of central bankers and driven them towards a more active stance where they acknowledge that central bankers shape and make, and not only ‘mirror’, market forces.

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Section: The Inevitable Repoliticization Of Central Bankingmentioning

confidence: 99%

Beyond market neutrality? Central banks and the problem of climate change

2023

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“…There has been a burgeoning literature on the regulation of shadow banking in recent years, particularly related to its implications for financial stability (Engelen, 2018; Helgadóttir, 2016; Knaack & Gruin, 2020; Kranke & Yarrow, 2019; Thiemann et al, 2021). But there is broad agreement that post‐crisis regulatory changes in the sector have been relatively limited, certainly compared to banking regulation (Ban & Gabor, 2016; Helleiner, 2014; Tsingou, 2015).…”

Section: Theoretical Perspectives and Research Designmentioning

confidence: 99%

“…For example, Baker (2013) details how the shift toward macroprudential regulation after 2008 emerged from a new post‐crisis “interpretive frame” among bank regulators. Recent studies also point to epistemic disagreements between regulators over the adoption of countercyclical measures (Thiemann, 2019) and the mitigation of systemic risk (Thiemann et al, 2021; cf. Kranke & Yarrow, 2019).…”

Section: Theoretical Perspectives and Research Designmentioning

confidence: 99%

“…This article sets out to explain the failure to strengthen the regulation of a critical part of the shadow banking industry: investment funds. Although previous work has focused on other parts of the sector—notably hedge funds (Fioretos, 2010), repos (Gabor, 2016), money market funds (Woyames Dreher, 2019), securitization (Braun, 2020), and macroprudential regulation (Kranke & Yarrow, 2019; Thiemann et al, 2021)—investment fund regulation has hitherto been overlooked. This is all the more surprising given regulators' mounting concerns about the threat to financial stability posed by a sector with assets under management surpassing their pre‐crisis level (FSB, 2019), and with some funds now larger than global‐systemically important banks.…”

Section: Introductionmentioning

confidence: 99%

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Epistemic contestation and interagency conflict: The challenge of regulating investment funds

James

Quaglia

2022

Regulation & Governance

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Scholarship on regulating global finance emphasizes the importance of national and bureaucratic interests, but less attention has been devoted to epistemic sources of regulatory conflict. We address this by analyzing the failure of regulators to agree tougher rules for large investment funds after the 2008 crisis. The article suggests this outcome was the result of epistemic contestation between prudential regulators and securities regulators, rooted in divergent interpretive “frames.” We show that US and EU prudential regulators pushed for entity‐based regulation of investment funds by escalating the issue to global standard‐setting bodies. But this was successfully resisted by securities regulators that exercised epistemic authority through recursive practices—appeals to expertise, jurisdictional claims, and alliance building—to defend their transaction‐based approach. The article demonstrates how an interpretivist perspective can provide new insights into inter‐agency conflict and regulatory disputes in other policy fields.

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“…The development of a circular economy requires capital investment, which is determined by the characteristics of a circular economy (Thiemann et al , 2020) . At present, the development of China's circular economy is still in its infancy, and financial support for the development of the circular economy is still very weak.…”

Section: Introductionmentioning

confidence: 99%

Research on the action mechanism of circular economy development and green finance based on entropy method and big data

Xiao-fei

2021

JEIM

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PurposeBy calculating the information entropy of the indicator and measuring the amount of information in the data, this paper determines the weight of the indicator according to the impact of the relative change of the indicator on the whole.Design/methodology/approachIn order to study the action mechanism of circular economy development and green finance, based on the entropy method, this paper constructs a system analysis model based on event research.FindingsMoreover, this paper uses the analytic hierarchy process to obtain subjective weights based on expert opinions and then uses the entropy method to obtain objective weights and finally combines the two. In addition, an intelligent model is constructed based on the action mechanism of circular economy development and green finance to improve the system structure.Originality/valueFinally, this paper designs experiments to verify the performance of the system model. The research results show that the system model constructed in this paper meets the actual situation.

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Measuring and mitigating systemic risks: how the forging of new alliances between central bank and academic economists legitimize the transnational macroprudential agenda

Cited by 28 publications

References 85 publications

Beyond market neutrality? Central banks and the problem of climate change

Beyond market neutrality? Central banks and the problem of climate change

Epistemic contestation and interagency conflict: The challenge of regulating investment funds

Research on the action mechanism of circular economy development and green finance based on entropy method and big data

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