What is CRISIS?
CRISIS is the Complexity Research Initiative for Systemic Instabilities. It is a consortium of universities, private firms and policymakers that aims to build a new model of the economy and financial system that is based on how people and institutions actually behave.
It was set up in the wake of the global financial crisis that showed that existing models that had been adequate for the good times were utterly inadequate for predicting major crises.
CRISIS is a consortium of researchers from 11 leading European academic and private sector institutions, supported by an advisory board of senior current and former policymakers and financiers. The three-year project (2011-2014) is funded by the European Commission.
The goal is to build new models, one for the EU financial system and one for its macroeconomy. When they are completed, CRISIS will turn the models into software that can be used by central banks and governments. For that reason, CRISIS will work in collaboration with major central banks, government economic and finance ministries, and with multilateral institutions.
CRISIS aims to develop tools to deepen policymakers’ understanding of the economic and financial system and give them realistic options for modelling the economy and designing policies and regulations. It will deliver three products:
- A model of the EU financial system and macroeconomy, with a user-friendly graphical interface and a web-based gaming mode.
- A granular database of households, firms, and financial institutions.
- Analyses of critical EU financial and economic issues based on the model.