Vasisht and Bradfield Speak on Central Banking

Gaurav Vasisht, director of the Financial Regulation Program, and Michael Bradfield, Volcker Alliance director and general counsel, spoke at a workshop convened by the Institute for New Economic Thinking and the Official Monetary and Financial Institutions Forum. The workshop, held at the Lotos Club in New York City, was the second in a global series and included a small group of present and former leading central bankers, public financial officials, representatives of international financial institutions, leading academics, and other specialist researchers.

Titled “New World, New Roles, New Frameworks: The functions, performance and accountability of central banks,” the workshop delved into issues of central bank remits and balance sheets, and explored challenges and solutions for central banking in advanced versus advancing countries. In their remarks Messrs. Vasisht and Bradfield focused on matters of financial stability, including the hazards posed by uninsured short-term debt instruments and the concentration of systemic risk in central clearinghouses, exploring the pros and cons of various policy solutions to redress both issues. They also presented options to strengthen the regulatory structure to enhance the effectiveness of financial stability policy.