Workshop “The Economics of Risk”

Workshop “The Economics of Risk”

Organized by Bank for International Settlements, European Stability Mechanism, European University Institute, Fondazione Collegio Carlo Alberto and HEC Montréal

ESM, Luxembourg, 26-27 September 2024

In the last 15 years, the global economy has experienced several extreme events including the Global Financial Crises, the COVID-19 pandemic, the war in Ukraine, the war in the Gaza Strip and extreme weather events. The human and economic costs have been tremendous. These extreme events have catalyzed the attention of policymakers and markets in search for ways to reduce their occurrence and/or to mitigate their consequences. Endeavors that will require significant investments as well as the reframing of several institutions, enhancing international policy cooperation and risk sharing.

This conference seeks to bring together research investigating the economic implications of uncertainty and risks, and, in particular:
• The measurement of (tail) risks and their effects on macroeconomic outcomes;
• Policies aimed at mitigating risks and dealing with the consequences of extreme events;
• The microeconomic implications of risks, including how financial institutions are affected by adverse events;
• Whether and how financial markets price (tail) risks, and which instruments/financial architecture can increase the resilience of financial markets;
• How (tail) risk affects international trade and finance, and whether the current global monetary and financial system is equipped to deal with large-scale disasters and geopolitical conflicts.

Organising Committee: Robert Blotevogel (ESM), Matteo Cacciatore (HEC), Giancarlo Corsetti (EUI), Giovanni Lombardo (SNB on leave from BIS), Federico Ravenna (CCA), Karamfil Todorov (BIS)

See also: www.esm.europa.eu/events/economics-risk