Maxwell Fry Global Finance Lecture: Financial Development and Financial Stability: Lessons from a Euro area Banking Crisis
- G12 Main Lecture Theatre University House Birmingham Business School
- Alumni, Social Sciences, Students
Speaker: Panicos Demetriades (Professor of Financial Economics, University of Leicester)
The lecture will provide a bird’s eye view of fifty years of accumulated knowledge on financial development and its uneasy relationship with financial stability. Its starting point will be the McKinnon-Shaw model that was popularized by Maxwell Fry in the late 1980s. It will continue with the literature on the finance-growth nexus that emerged in the 1990s and its more recent breakdown, which coincided with the onset of the global financial crisis. It will put forward three inter-related reasons behind the breakdown of the finance-growth nexus, all of which help to explain why monetary and financial policies paid insufficient attention to financial stability.
The second part of the lecture will draw lessons from the recent banking crisis in Cyprus, which constitutes an important case study of the breakdown of the finance-growth nexus. The analysis will draw on the speaker’s unique personal insights during his period as Governor of the Central Bank of Cyprus, which are included in his forthcoming book A Diary of the Euro Crisis in Cyprus: Lessons for Bank Recovery and Resolution, Palgrave-Macmillan.
About the speaker
Panicos Demetriades served as Governor of the Central Bank of Cyprus and was a member of the Governing Council of the European Central Bank from May 2012 until stepping down from the governorship in Cyprus in April 2014, a move that The Economist described as ‘a blow to central bank independence’. He returned to his academic position in the UK as Professor of Financial Economics at the University of Leicester shortly after.
Professor Demetriades continues to speak regularly around the world on his experience as Governor of the Central Bank of Cyprus during one of Europe’s worst financial crises. He holds a PhD in Economics from the University of Cambridge, UK, and BA and MA degrees, also in Economics, from the University of Essex, UK. His academic career spans a period of 25 years, the last 15 of which have been with the University of Leicester. He has published extensively in academic journals and books, primarily in the area of financial development.
According to RePEc (Research Papers in Economics) he is among the most widely read and cited economics authors in the world. He has also published in ‘popular’ and specialist media, such as VOX-EU, The Conversation and The Financial Times. He is frequently a guest on TV and radio programmes worldwide in relation to the euro crisis, Brexit and other economic issues. Professor Demetriades is a Fellow of the Academy of Social Sciences of the United Kingdom.