Financial Fragility and the Economy -  The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022

Mode of Event

• In-person: Registration closed and walk-ins are welcome.

• Zoom (Registration is NOT required): https://hkust.zoom.us/j/96686498571 (Webinar ID: 966 8649 8571 / Passcode: nobel2022)

Abstract

The financial crisis of 2008 shook banking markets around the world leading to an extended period of global economic distress. The Sverige Riksbank Prize to Honor Alfred Nobel was presented to Ben S. Bernanke, Douglas W. Diamond and Philip Dybvig for their work on understanding the crucial but unstable role of banks in the functioning of the economy. In particular, these scholars showed that the very structure that makes institutions most efficient at delivering needed services to both borrowers and depositors, also makes them vulnerable to systemic crisis. Banks finance long-term illiquid loans with liquid demand deposits, creating both credit and liquidity services needed by the economy. However, when the economy faces stress, depositors can and do flee banks with vulnerable balance sheets, damaging the ability of the economy to build capacity and stabilize demand. This inherent fragility transforms economic stress into economic crisis. The lessons taught and learned by Bernanke, Diamond, and Dybvig concerning the causes and effects of the fragility of financial intermediaries guided policy responses before and after the crisis, to the current day.

About the Speaker

Prof. David COOK joined the Hong Kong University of Science and Technology Department of Economics in 1996 after receiving a PhD. in economics from the University of Wisconsin at Madison. He is currently a Professor at HKUST. His research focuses on international macroeconomics with a concentration on emerging markets issues. He is currently the Hong Kong Editor of the Pacific Economic Review.

Campus Access Control and Disease Prevention Measures

• To enter the campus for this event, non-HKUST members who have signed up as Friends of HKUST via the event registration form will be registered as “visitors” by the event organizer to the University for their easy access thru the campus gates.

• Except for exempted persons, all visitors entering the venue must comply with the ‘Vaccine Pass’ arrangements and other requirements under Cap.599F (See https://www.coronavirus.gov.hk/pdf/vp_ac.pdf)

• Audience will be required to take temperature check at the entrance of the venue. Those with fever and/or upper respiratory tract infection (URTI) symptoms will be denied for entry.

• Audience must properly wear a mask covering their nose and mouth at all times in the venue.

• Audience should follow seating instruction imposed by onsite staff as special seating arrangements and capacity control will be implemented.