A senior executive from the Bank of England will ask “Is the Global Financial System Safe?” at a lecture to University of Manchester staff and students today.
Andy Haldane is Executive Director for Financial Stability, which has responsibility for developing Bank policy on financial stability issues.
Mr Haldane will note that one of the key lessons from the financial crisis was to manage the financial system as a whole rather than bank by bank. While that lesson has been learnt in international banking, it has not been taken to heart in the design of the international monetary and financial system.
Mr Haldane will argue that potentially damaging fluctuations in financial markets which affect other countries, known as market spillovers, are more common now than ever before.
This, he will say, is down to greater global integration of traded goods and services and, in particular financial assets and liabilities.
He believes the international monetary system needs a reform agenda to strengthen the rules and institutions which regulate capital movements across countries and promote international financial stability.
That reform should improve the monitoring of spillovers between countries, and their international consequences, by multilateral institutions like the International Monetary Fund.
Mr Haldane will say such reform should promote better policies aimed at mitigating systemic financial risks, such as the prudent management of debt and capital flows. And policymakers should consider strengthening international financing mechanisms, multilaterally, regionally and bilaterally.
Mr Haldane joined the Bank in 1989 and is a member of the Financial Policy Committee as well as several senior management committees of the Bank.
He is the co-founder of a charity 'Pro Bono Economics', which aims to broker economists into projects in the charitable sector.
He also has written extensively on domestic and international monetary and financial stability.
Notes for editors
The talk, with a Q and A session, will take place in the Martin Harris centre, University of Manchester, from 2.30-4.00pm on March 5
There will be no wifi available for any journalists wishing to attend
For media enquires contact: Mike Addelman Press Officer Faculty of Humanities The University of Manchester 0161 275 0790 07717 881567 Michael.firstname.lastname@example.org