Central Banks and Systemic Risk (Online Forum)
On the heels of the financial crisis of 2007–2008, there has scarcely been a more hotly debated topic than central bank monetary policy. From the US Federal Reserve to the European Central Bank to the Bank of Japan to other central banks the world over, virtually all countries have been engaged in extraordinary monetary measures which bring to the fore a host of questions. For example, given the entirety of central bank activities, what is their role in creating or reducing systemic risk on balance? Do they create the instability they claim to protect us against? Or, do they serve a vital public interest?
On one side of the debate is a loud chorus of complaints that government bailouts have encouraged moral hazard, quantitative easing is creating large distortions throughout the entire economy, and that low rates are creating both credit and asset bubbles and preventing the underlying economy from healing. On the other side of the debate are adamant claims that government actions — and particularly those of the central banks — saved the world from another Great Depression, have stimulated the economy, and have supported job creation. Who’s right? Has central bank policy indeed saved the world? Or did it cause this mess in the first place? Or are we lost within a supercycle whose risks haven’t been fully born out yet? Is there a better way? At the very bottom of it all lies a fundamental question: Do central banks create or reduce system risk?
Weighing in on these vital questions is a blue-ribbon panel of experts assembled by CFA Institute for a panel discussion titled “Central Banks and Systemic Risk.” Our distinguished panelists include: Paul Brodsky; James Grant; David M. Jones; William Poole; and Jim Rickards. Join us here on the Enterprising Investor, 14–16 January 2014 for a moderated discussion as we explore the function and purpose of the global monetary system.
As moderator for the discussion, I will also be fielding your questions. To submit a question simply ask your question in the comments section below. We look forward to your participation and a great discussion!
Paul Brodsky (@pebrod)
Brodsky is the former co-founder and managing member at QB Asset Management (QBAMCO), which recently merged with Kopernik Global Investors, where he is a portfolio manager. Mr. Brodsky began trading on Wall Street in 1982 and has managed investment funds since 1996. He publishes macro market research for professional investors.
James Grant (@GrantsPub)
Grant is the founder and editor of Grant’s Interest Rate Observer, as well as author of numerous books, including the acclaimed Mr. Market Miscalculates: The Bubble Years and Beyond (2008).
David M. Jones (@dmjadvisorsllc)
Jones is president and CEO of DMJ Advisors, a Denver-based consulting firm. He is also an executive professor of economics at the Lutgert College of Business at Florida Gulf Coast University and has served as a consultant for Mizuho Securities Company.
William Poole (@elk_guy)
Poole is a former president of the Federal Reserve Bank of St. Louis and member of the Federal Open Market Committee. He is currently a senior fellow at the Cato Institute, senior advisor to Merk Investments, and, as of fall 2008, distinguished scholar in residence at the University of Delaware.
Jim Rickards (@JamesGRickards)
Rickards has held senior executive positions at sell-side firms (Citibank and RBS Greenwich Capital Markets) and buy side-firms (Long-Term Capital Management and Caxton Associates) as well as technology firms (OptiMark and Omnis). Since 2001, he has applied his financial expertise to a variety of tasks for the benefit of the US national security community and the Department of Defense.
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