In its most popular form, the efficient market hypothesis (EMH) is the claim that asset prices reflect all publicly available information. The EMH is an important cornerstone for most asset pricing models. But it is also highly controversial. Critics claim that models based on the EMH are to blame for the inability of predicting and … Continue reading The Efficient Market Hypothesis

Complexity science provides new ways of modelling the financial system as a complex system. It challenges dominant views of linearity, predictability, and responsibility in finance. On the philosophical side, this could have implications for how we think about morality in financial markets. On the policy side, the complexity approach could require a rethinking of how … Continue reading The Complexity Science Approach to the Financial System

How can we respond to sovereign debt crises in a fair way? In this seminar, we will tackle core philosophical and economic questions that arise in sovereign debt crises, with a special focus on Europe, and in particular on Greece. We’ll tackle the following normative issues: In what way are states morally bound by sovereign … Continue reading Debt and Democracy

The financial crisis has brought financial stability to the forefront of economic policy debates. New institutions with the mission to pursue financial stability have sprung up, financial regulation has been reformed, and a major stress test of European banks is under way to assess the resilience of the financial system. But what is financial stability, … Continue reading Achieving Financial Stability?

What kinds of risk are there in the financial system, and how should financial regulators deal with them? Complex financial systems create credit and enable businesses, households, and states to share risks, but they are also prone to financial crises. Financial regulators seeking to achieve financial stability need to assess systemic risks in the financial … Continue reading Risk in Finance

In dem Seminar geht es um die Verantwortung von Schuldnern und Kreditgebern in Staatsschuldenkrisen . Dabei dient die derzeitige Europäische Schuldenkrise zwar als zentrales Beispiel, wir werden jedoch auf zahlreiche andere Staatsschuldenkrisen eingehen. Ziel des Seminars ist es, empirisch mit den Studierenden die polit-ökonomischen Ursachen und Kosten von Staatsschuldenkrisen zu erarbeiten und diese mit philosophischen … Continue reading The Philosophy and Economics of Sovereign Debt