👓 Read this Systemic Risk Centre & The FMG DP: 📕 "The calming of short-term market fear and its long-term consequences: The central banks’ dilemma", by Mattia Bevilacqua, Jon Danielsson, L Ergun, A Uthemann, Jean-Pierre Zigrand 📍 shorturl.at/6WImp #Fed #FXSwap #marketfears #fmg #lse #src

Our Spring Term events season included informative panels, important public lectures and some exciting conferences! To catch-up, please head over to our past events page, where you can find videos, photos, slides and more. fmg.ac.uk/past-events #fmg #src #lse #finance #econ

The FMG monthly E-bulletin is out! mailchi.mp/mail.lse.ac.uk… Not on our mailing list yet? Join here: ow.ly/nRFi50PhjIP #fmg #lse #financialmarkets

NEW JA published in Elsevier's Journal of International Money and Finance Latent fragility: Conditioning banks' joint probability of default on the financial cycle P. Bochmann, P. Hiebert, both European Central Bank, Y. Schüler Deutsche Bundesbank, M. Segoviano IMF systemicrisk.ac.uk/publications/a…

A key reason for the alarming frequency of financial crises is failures in regulation - Jon Danielsson proposes that the financial authorities adopt a fundamental concept from finance – diversification - to help to build a more resilient system, VoxEU cepr.org/voxeu/columns/…

Researchers at the Systemic Risk Centre have long been looking into the relationship between #AI and #SystemicRisk. Check out the link for some of our publications and events on the topic: loom.ly/gqkZ9ds #src #lse #fmg

Pedro Duarte Neves says #StressTests must evolve to capture #systemic, #liquidity and #cyber #risks. Read his opinion piece "Stress-testing the banking system: what lies ahead?": loom.ly/1rTZi7A

Thanks to AI, the next AI financial crisis will play out in minutes and hours rather than days and weeks as now. VoxEU Richard Baldwin cepr.org/voxeu/columns/…

👉AI will not create new fundamental causes of crises but will amplify the existing ones 👉 Thanks to AI, stress that might have taken days or weeks to unfold can now happen in minutes or hours. ✍️ Jon Danielsson etal VoxEU CEPR Jon Danielsson 🔗 cepr.org/voxeu/columns/…

The next AI financial crisis will be particularly intense, play out in minutes and hours, rather than days or weeks as today. Central banks chose have good options. All in two VoxEU posts cepr.org/voxeu/columns/… cepr.org/voxeu/columns/…

AI can increase financial risk or act to stabilise the system, depending on endogenous responses, strategic complementarities, the severity of events it faces, and the objectives it is given. Jon Danielsson Systemic Risk Centre, Andreas Uthemann Bank of Canada Systemic Risk Centre ow.ly/vr3z50SKHY4

Pedro Duarte Neves' policy note summarises the main empirical findings on the effectiveness of #macroprudential #policy. Read his opinion piece "Stylised facts on the effectiveness of macroprudential policy" published on SUERF - The European Money and Finance Forum: loom.ly/Ugu71NY

The best way for authorities to respond to AI is to develop their own AI engines, set up AI-to-AI links, implement automatic standing facilities, & make use of public-private partnerships. Jon Danielsson LSE Finance, A Uthemann Bank of Canada LSE Finance ow.ly/ByFi50SLZMJ

#AI financial crises Jon Danielsson Jon Danielsson LSE LSE Finance Systemic Risk Centre, Andreas Uthemann Bank of Canada LSE LSE Finance Systemic Risk Centre ow.ly/b96N50SKI8G

👓 Read this Systemic Risk Centre & The FMG DP: 📘 "An Unconventional FX Tail Risk Story" 👥 By Carlos Cañon (Bank of England King's College London), Eddie Gerba (BoE LSE European Institute) Alberto Pambira (BoE), Evarist Stoja (University of Bristol University of Bristol Business School & SRC) 🔗 buff.ly/3AfK7QI #fmg #lse #src

Check out the page below which has been updated with the most recent opinion pieces on AI.

Read this JA published in "The Review of Financial Studies" by Jon Danielsson (@LSEFinance, Systemic Risk Centre), Marcela Valenzuela (Universidad Católica), Ilknur Zer (Federal Reserve) 'The Impact of Risk Cycles on Business Cycles: A Historical View' 🔗 buff.ly/4dFyoJX #fmg #lse #src

📢 Have you heard of the FMG Digest yet? 🎙️FMG Digest is a roundup of our newest and most relevant research, insights, events, and more! 📰 Read the first issue here and sign up to receive future issues and other news: buff.ly/3StBUi8 #finance #sustainable #governance