How Can We Apply Lessons from the Past in Designing Policy for the Future?

Zoë Knight (HSBC Centre of Sustainable Finance), Bob Litterman (Kepos Capital), Ronan Palmer (E3G), Dimitri Zenghelis (University of Cambridge)

The global financial crisis highlighted the shortcomings of fiscal and monetary policy coordination over a period of structural change and surplus desired net saving. Growing discontent, societal unrest, stagnating or falling standards of living for many have been mounting features for some time. Concern about climate change have been compounded by fears associated with the vulnerability to unexpected shocks like pandemics. At the same time, the pace of new technologies, both digital and related to the net zero transition, expose new risks and opportunities threatening old sectors and markets while stimulating others.

The global financial crisis highlighted the shortcomings of fiscal and monetary policy coordination. Following the crash of 2008, increasingly ambitious monetary measures prevented a deeper depression, but failed to generate a sustainable, inclusive and resilient recovery. With the knock to confidence caused by COVID-19 it seems unlikely that monetary policy alone will do a better job this time.

If successful monetary policy increasingly depends on successful fiscal and other policy to meet its macro policy mandate, prudential mandate and financial stability mandate, what does this mean for institutional architecture?

What is the role of policy in supporting investment in key comprehensive public assets (including human capital, natural capital, social capital and other intangible capital)?
There is a growing focus on dynamic 'market creation' and 'market shaping', in place of addressing static 'market failures'. How might institutions be re-purposed to strategically steer the economy in a sustainable and resilient direction?

How can we achieve long-term outcomes, articulate intermediate pathways and move from reaction to anticipation when preventing crises and securing economic resilience?
With more intervention to steer the economy, can regulation/supervision help safeguard against replacing market failure with policy failure and rent-seeking by powerful lobbies?

Speakers

Dimitri Zenghelis (Project Leader: The Wealth Economy, Bennett Institute for Public Policy, University of Cambridge)

Zoë Knight (Managing Director, Group Head, HSBC Centre of Sustainable Finance)

Bob Litterman (Founding Partner, Kepos Capital)

Ronan Palmer (Clean Economy Program Leader, E3G) (Chair)

The event is open to all but prior registration is required .

The event forms part of the Sustainable Crisis Responses project funded by the International Network for Sustainable Financial Policy Insights, Research & Exchange (INSPIRE) led by a research partnership comprising E3G, SOAS Centre for Sustainable Finance, SEACEN and the Bennett Institute for Public Policy. This event is organised in co-operation with the Nordic Institute for Finance, Technology and Sustainability.

Organiser: Centre for Sustainable Finance

Contact email: uv1@soas.ac.uk