Why CRISIS is needed
The global financial crisis destroyed the faith that both policymakers and the general public had in the traditional economic models and thinking that had failed to foresee the disaster.
The CRISIS project aims to fill that gap by developing a new approach to economic modelling and understanding risks and instabilities in the global economy and financial system.
Transparency key to credit regulation
Attempts to regulate the degree of leverage used by financial investors that ignore how leverage works risk doing more harm than good, according to research carried out by scholars in the CRISIS network.
Since systemic risk in times of high leverage is driven by the behaviour of different agents, regulation should focus on increasing transparency so that all creditors and borrowers could see the risks they were taking on.