Financial Update (Second Quarter 2009)
Atlanta Fed Conference Takes Multifaceted Look at Crisis
The Atlanta Fed's 2009 Financial Markets Conference—Financial Innovation and Crises—featured an opening keynote address by Fed Chairman Ben Bernanke and discussions of the financial crisis and the role played by complex new investment instruments.
Range of perspectives represented
Efforts of the Fed and other regulatory agencies to generate liquidity and stabilize the financial system mean that monetary policy is closely tied to financial markets. Thus, Tkac pointed out, a serious exploration of issues surrounding innovation and crisis was particularly timely.
Blend of theoretical, practical
Other discussions centered on larger policy issues. For example, given the deep interconnectedness of global capital markets, is there a place for a regulator with global reach? Also, should firms spanning borders require an international charter granted by a body such as the International Monetary Fund?
Looking ahead, innovation in financial markets is unlikely to halt, but it might change, Tkac said. Rather than increasingly complicated investments, she said new forms of regulatory policy and risk management could develop.
May 26, 2009