Issue 3 The Political Economy of Financial Markets October 2015 PEFM in Focus

All the world’s a stage... Inside this issue: The past year 2014/15 has seen migrant crisis where Europe, as shenanigans at Volkswagen has All the world’s a stage... 1 no shortage of dramas, much ever, struggles to achieve shifted the spotlight of ethics The PEFM vision 1 of Greek origin and character, consensus on strategy. In the misdemeanours from Anglo- People at PEFM 2 in the political economy of background, the great China Saxon finance to German financial markets. At the deflation is now playing, with manufacturing, no doubt Ethics and finance 3 forefront of the stage was the dyspeptic local symptoms of tempting some schadenfreude An interview with 4 agonizing resistance and then spectacular stock market among the lately unloved David Vines capitulation of the Syriza-led crashes, and the effects of the bankers of London and New PEFM Seminar Series 6 government in Athens to the slowdown filtering out into York. There is still much terms of the austerity camp led collapsing commodity prices material for PEFM to digest! Highlights of other PEFM 7 by Berlin, with the IMF and pressure to delay—yet David Vines and Adam Bennett events stepping aside—unwilling to again—tighter monetary PEFM events in 2014-15 8 commit without the debt policies in the fast growing reduction that it should have economies of the USA and UK. insisted on at the outset in Are these the last men standing 2010. The travails of the for the global economy? Eurozone have, for the Meanwhile, the stunning moment, been eclipsed by the revelations of vehicle emissions

The PEFM vision The goal of the Political frameworks and of financial different academic disciplines, programme - not only among Economy of Financial Markets supervision. The programme is and from official and private academic institutions but at the programme (PEFM) is to devoting special attention to market institutions, so that IMF, the European Commission, improve the institutional design two things. The first is the role their complementary research the European Stability of policy frameworks affecting of macroeconomic frameworks efforts and discussions can help Mechanism, H M Treasury, the financial markets, in order to in setting the stage for develop and promulgate new Bank of England, Chatham help foster sustainable and sustainable financial flows. The policy insights. This response House, and the Financial Times. crisis-free growth. The second is the change in ethical capacity should help address Our aim is that, over time, we programme focuses on the framework which appears to new and potentially can build PEFM into a go-to interaction between official be necessary if the financial destabilising market tendencies place in Oxford for policy- policies and financial market system is to again play a as these emerge. related work on the financial behaviour. It explores how constructive role within the Other programmes in Oxford system. Our experience in incentives affecting the economy. have been very receptive to co- Oxford might indeed serve as a financial sector can be The goal of PEFM is not to organising events with PEFM. catalyst - and perhaps a first coordinated to foster more compile a cookbook of static And there has been a healthy node - for a wider network of stable growth in the real policy recipes. In a world of appetite for the output of the this kind in the UK. economy in the future. adaptive and interactive The scope of the 'official financial markets, that would Political Economy of Financial Markets policies' reviewed under the not be realistic. Rather, the aim European Studies Centre | St Antony’s College programme goes well beyond is to bring together a | OX2 6JF the design of regulatory community of experts from Tel: +44 (0)1865 274537 | E-mail: [email protected]

Website: http://www.sant.ox.ac.uk/research-centres/political-economy-financial-markets People at PEFM

In 2015, Nathalie Gold and Nick Morris joined PEFM as Associates. They both will be working on the Ethics and Finance project.

Natalie Gold Natalie is a Senior Research Fellow at Kings College London. Her research is on behavioural decision making and moral psychology. She has worked on topics including the framing of decisions, moral judgements and decisions, cooperation and coordination, and self-control. Natalie studied philosophy, politics, and economics at Balliol, and although her ultimate goal was always philosophy she followed this with an MPhil and a DPhil in Economics, specialising in experimental economics. She held postdoctoral fellowships at the University of Konstanz and at Duke University, and then became a Lecturer in Mind, Reason, and Decision in the Philosophy Department at the University of Edinburgh. At Edinburgh, Natalie ran the AHRC funded project ‘Framing Effects in Ethical Dilemmas’ and since 2011 she has led a project at Kings, ‘Self-Control and the Person: An Interdisciplinary Account’ funded by the European Research Council.

Nick Morris Nick is an economist with 35 years of wide-ranging experience. He was a co-founder and then Chief Executive of London Economics, for a period of 14 years, and, prior to that, was Deputy Director of the Institute for Fiscal Studies. Nick studied Engineering and Economics at Balliol, emerging with an M.Phil in Economics, and recently obtained a PhD in Law from the University of New South Wales. He has been a visiting Professor of City University, a Governor of the charity ‘Research into Ageing’, and a Fellow of Melbourne University; he is currently a Guest Professor at the China Executive Leadership Academy in Shanghai. In the 1980’s Nick was involved in the privatisation of utilities, and the establishment of utility regulation in the United Kingdom. In the 1990’s he worked on the establishment of new markets and regulatory regimes, both in Europe and in developing countries and emerging-market economies. During the last 12 years he has worked extensively in Australia, South East Asia and China advising governments, regulators and companies.

C. Maxwell Watson: 1946-2014 Max Watson, the inaugural Director and creator of the programme on the Political Economy of Financial Markets (PEFM), succumbed to cancer in December 2014. He started his professional life at the Bank of England and was one of a series of young bank officials to be seconded to the IMF (1979-81) as personal assistant to the Managing Director, then Jacques de Larosière. Max returned to the Bank of England, but came back to the IMF in 1984 as Chief of the International Capital Markets Division. Over the next few years, he helped devise debt-reduction plans for more than a dozen highly-indebted Latin American countries. This work was essential for the success of the 1989 Brady Plan, through which the Latin American crisis was eventually resolved. Max had a similarly distinguished post-Fund career. At the European Commission in Brussels, he served as Economic Adviser to the Director General for Economic and Financial Affairs, Klaus Regling. He was later was asked by the Minister of Finance of Ireland to prepare a detailed independent report into the origins of Ireland's 2009 banking crisis, and in 2010 was appointed to Ireland’s Central Bank Commission, the governing body of the central bank. At Oxford, he spearheaded the political economy work of South East European Studies at Oxford (SEESOX) at St Antony’s College, where he became a Visiting Fellow, and then in 2012 launched PEFM. In his extra-mural life Max was an avid sailor, owned a vintage Rolls Royce (and took part in a 700 mile Rolls Royce rally through Rajasthan, India), and also keen bird-watcher. Max was an inveterate traveller and multilingual, having studied languages at Cambridge, but also picked up languages (e.g., Japanese) as his career took him from country to country. He will be greatly missed by many around the world.

PEFM is now organized under the following management team : David Vines, Acting Director; Adam Bennett, Deputy Director; Julie Adams, Programme Administrator TEL. 01865 274537 | EMAIL: [email protected]

Page 2 PEFM in Focus Ethics and finance Restoring trust in the financial system

Two years ago, the Archbishop of integrity. That character trait cannot be others), experiments on ways of improving Canterbury, Justin Welby, called for the successfully pursued as an end in itself, or the behaviour of the financial-system financial system to return to “a broad effectively feigned, by the kind of selfish workforce (to be carried out by our sense of promoting the wellbeing” of individuals which economists seem to philosopher colleague Natalie Gold who is those whom it serves (Welby, 2013). He imagine inhabit this planet. It can only at Kings College, London), and analysis of argued for what he called a “change in emerge in the presence of a genuine the legal system (including acknowledging culture”, and then said: concern for the interests of others – an the fact that good laws can help promote idea discussed in some detail in Integrity in good behaviour and not just prevent bad “[This] means that companies the Public and Private Domains, edited by behaviour). It will also include some should be communities of common Alan Montefiore and David Vines and philosophical analysis about the interest which serve the common published by Routledge in 1999. underpinning of trust, and some history of good. For that to happen there In Firm Commitment: Why the economic thought, about why it was that needs to be a store of value in them: Corporation is Failing us and how to Restore economists came to suppose that the a sense of what is right that is Trust in It, published by OUP in 8679, Colin world contains only selfish people. independent of our individual Mayer described how the modern financial Colin Mayer, Nick Morris and David Vines achievement; compassionate in its system has forced corporate governance acceptance of us [i.e. of other in the wider economy to focus on members of the community]; [and] maximising short-term shareholder value. empowering in its interaction with This has had severely adverse effects in the us … [T]rust and confidence … have economy as a whole: it has greatly been lost and there needs to be weakened the ability of business drastic action … to get them back.” enterprises to obtain savings and to invest A group of us within PEFM are them in long-lasting productive projects. investigating how the necessary change in The second part of the necessary change in culture might be brought about. the culture of the financial system is that it In Capital Failure: Rebuilding Trust in must encourage more appropriate forms Financial Services, which Nicholas Morris of corporate governance to be adopted of and David Vines edited and which was the kind which align the interests of published by Oxford University Press in financial institutions with society more 2014, two of us described how an generally. This would enable firms to increasing focus on the personal rewards support the needs of a wider set of of those who work in the financial system stakeholders and a wider range of social has led to a breakdown of trust. purposes. Employees of financial firms – who once These are two big cultural changes. We sought to earn fees by helping savers are confident the newly established invest their money well, and helping Banking Standards Board will nudge the investors to finance productive projects - financial services industry both in the increasingly became individuals motivated direction of increased professionalism and entirely by a search for clients from whom in the direction of allowing better they could make money. The first part of corporate governance. But its work will the necessary change in culture requires need support, from researchers such as the building of professionalism within the ourselves, in determining exactly what financial services industry. needs to be done. Those practicing a profession, like Our own research will be a mixture of doctors or architects, possess particular economic analysis (which will include competences based upon specialised making use of important new ideas from knowledge. But, more than this, their behavioural economics), corporate service to clients is sustained by a anthropology (including investigating why continuing relationship, carried out with some banks have behaved less badly than

Issue 3 Page 3 An interview with David Vines

David Vines is Acting Director of the Political Economy of Financial Markets Programme. He is a Professor of Economics at the University of Oxford and a Fellow of Balliol College. He is also the Director of the Ethics and Economics Programme in the Institute for New Economic Thinking at the Oxford Martin School and a Research Fellow of the Centre for Economic Policy Research in London. David’s research is on international macroeconomics, global governance, and financial reform. From 2008 to 2012 he was the Research Director of the European Union Framework Seven PEGGED Research Programme which examined the Politics and Economics of Global Governance from a European perspective. David has a BA in Economics and Mathematics from Melbourne University, and an MA and PhD in Economics from Cambridge University. In the late 1980s and early 1990s he held the Adam Smith Chair of Political Economy at the , and was also a Director of Channel Four Television.

How did you first become interested in seventies—saying that having full economics? “...PEFM provides employment as a policy objective was I began life as a scientist and went to a base for likely to lead to excessive inflation. This Melbourne University in 1968 to study seems obvious now, but it seemed understanding how physics. But in my second year I discovered (amazingly) a novel idea at the time! a Phillips machine, a very early global leadership Meade’s view was that by targeting macroeconomic model which used flows could be positioned nominal income, workers would realize that there was a trade-off between of water to create an analogue computer to manage the (one of only eight that Phillips ever made), employment and wages. I stood up again and I became fascinated by it. I decided to world economy and said that I could see the political- switch to Economics, and my course in life more effectively in economy attraction of what he was saying, was set! the future.” but I was sure that, if you wrote down his policy proposals as a set of differential How did you end up in the UK? equations, the resulting system would be In my final year at Melbourne I decided dynamically unstable. Meade recognised that Australia was so far away from my interest in his work, invited me to tea at everywhere else that I needed to go to won the Nobel prize for Economics (in his cottage in Shelford, and a month later I England as a graduate student to find out 1977) for his separate work on was working for him (although it took me how the rest of the world worked. At the international trade and international three years to change my mind about his time, I saw this as a temporary step in my macroeconomics. equations!). ambition to return to a career in economic One evening in the autumn of 1977, It was during this time with Meade that policy-making in Australia. Since then I Meade was billed to address the Marshall I first began to do interdisciplinary work; have often imagined that I would one day Society—the Cambridge undergraduate initially with control engineers. Our resume my original path, but not quite yet! economics club. I was keen to attend, as I Cambridge group joined up with Professor What did you work on as research student? had never heard him lecture. At the time David Currie’s team at Queen Mary Cambridge’s economic philosophy was we did not know that he had just been College, and together we did some split between left and right wing factions nominated for the Nobel Prize and that his important research on the application of when I arrived in 1972, and I found myself talk to us was a dry run for his forthcoming studying Ricardo and Marx at the same Nobel lecture. Meade adopted an early time as Arrow and Debreu. This was quite variant of monetarism in this talk which an intellectual juggling act! I eventually surprised us all, suggesting that became a Research Fellow engaged in the macroeconomic policy should no longer Cambridge Growth Project, led by Richard aim for full employment, but should Stone. Stone was later to win the Nobel instead target nominal income (i.e., Prize for Economics (in 1984) for his nominal GDP). This was too anti-Keynesian pioneering work on National Income for me, and at question time I stood up and Accounting, undertaken during World War said so. Meade responded in a kindly with the MONIAC machine that he II and directed by James Meade, who also manner—he was already in his early encouraged Bill Phillips to build.

Page 4 PEFM in Focus

control methods to economic member of PEFM’s Academic Steering policymaking. We used a number of ideas Committee and a former Member of the which originated with Bill Phillips, who had MPC), in papers in the Oxford Review of initially developed them when working Economic Policy. with James Meade. While I was in How did you become involved in working on Cambridge I also met my first wife, a trust in finance? musician, and soon had three sons, now in their late twenties and early thirties. In 2008, Andrew Graham, then Master of Balliol, put together a dinner in College to What happened after Cambridge? help us discuss the global financial crisis, In 1985 I moved to Glasgow as Adam Smith along with a group of interested Oxford Professor of Political Economy. During my colleagues, including my old friend Nick the process of globalisation and the need seven years in Glasgow I learned rather Morris (see his bio earlier in this for the world economy to be managed as a little about Adam Smith but found great Newsletter). At that dinner, Ngaire Woods whole – rather than each economy being pleasure in fulfilling the role of an (now Director of the Blavatnik School of managed separately. Such management intellectual leader in a great civic Public Policy) looked me in the eye and had been provided in London during the university. And I took the chance to begin said that Nick and I should seize hold of the time of the British Empire and, Keynes studying the world economy - which I had interdisciplinary tradition represented by argued, it needed to be provided again. planned to do when I left Australia. PPE in general—and Balliol in particular— My interest in global leadership converged Working again with David Currie, I set up a and address one of the key issues at the with the nascent project of the late Max collaborative team to analyse Global centre of our debate: the task of restoring Watson—the Political Economy of Economic Institutions. This led to a number trust in finance. And so we began our Financial Markets programme which he of books on the IMF, the World Bank, and work on ethics and finance, drawing on the launched in 2012 with a view to learning the WTO. I always thought that my next expertise of others in philosophy, politics, the lessons of the last great financial crisis, move from Glasgow would be 10,000 miles economics, and in many other relevant both as a political and as an economic south to somewhere in Australia, but disciplines. The first instalment of this phenomenon. Following Max’s untimely instead, in 1992, I moved only 300 miles, to project appeared a year ago in Capital death in 2014, and at his request, I became Oxford for what has proved to be an Failure: Rebuilding Trust in Financial the Acting Director of PEFM, with the extended stay. Services, published by OUP. Professor Colin support of Adam Bennett (like Max, ex- In Oxford I joined the team teaching Mayer (a member of PEFM’s Academic IMF) as Deputy Director. PEFM has PPE at Balliol, and was able to broaden my Steering Committee) has become a key become the natural home for our work on interdisciplinary interests: soon after partner in this work. Contributors include Ethics in Finance, which complements its coming to Oxford I edited a book on Natalie Gold (see her bio earlier in this focus on financial market reform—also, integrity with the Balliol philosopher Alan Newsletter), and other philosophers (e.g. PEFM provides a base for understanding Montefiore. I also became a member of Onora O’Neill, former President of the how global leadership could be positioned Oxford’s flourishing economics British Academy), as well as accountants , to manage the world economy more department. It was in Oxford that I met lawyers, finance theorists, and scientists effectively in the future. I see PEFM as an my second wife, Jane, a writer and mother (e.g. Bob May, former President of the institution which can provide many of the of two boys. Our combined family of five Royal Society). intellectual resources which are necessary sons has turned out to be remarkably to help build such an understanding. And I How did you become involved with PEFM? harmonious. feel confident that Max Watson would have In Oxford, I renewed my interest in the shared this ambition, were he with us now. What directions has your work taken in history of economic thought and in 2010 recent years? worked with the economic historian In Oxford, I began to extend my research Professor Peter Temin of MIT—a on the world economy, editing a number collaboration which produced, first The of books on topics such as the Asian Leaderless Economy: Why the World Miracle of the early 1990s and the East Economic System Fell Apart and How to Fix Asian Financial Crisis of 1997. I also began it and then Keynes: Useful Economics for the working on Europe and the UK, on both World Economy. In these two books we technical and policy work, some of which argue that Keynes should be thought of led me to collaborate with Chris Allsopp (a most of all as an economist interested in David Vines with Max Watson

Issue 3 Page 5 PEFM Seminar Series Financial Market Governance – Laying the foundations for sustainable growth

The opening months of the academic year for PEFM were clouded by the terminal illness and untimely death of the programme’s found- er, Max Watson, who passed away on December 12, 2014. Despite this, and under the new leadership of Professor David Vines (as Acting Director), the seminar programme (mostly held at St Antony’s College) was a very full one.

The Michaelmas seminar series was perform their role as financial opened by Professor Colin Mayer (Saïd intermediaries. While there was scope to Business School), who addressed the issue reduce reliance on banks in Europe, there of ethics and finance with evidence from were limitations on how much non-bank the corporate sector. Mayer criticized the financial markets could fill the short term focus of many shareholders, intermediation gap in, for example, the arguing that this favoured corporate USA. There therefore needed to be a abuse, and suggested (inter alia) that realization that there was a balance to be inducements toward long term made between growth and stability. This shareholdings and other governance line of argument was echoed by Charles Colin Mayer changes oriented to better respecting the Collyns (Chief Economist, IIF), who interests of consumers and employees presented data showing a sharp decline in should be put in place. This seminar was cross-border banking flows since the crisis. followed by a presentation by Nick Morris He attributed this in part to a tightening up and David Vines (both Balliol College) who of the regulatory framework, although he enlarged on the theme of ethics and acknowledged that financial globalization finance and introduced their recently might have overshot and that some published book Capital Failure. They correction might be healthy. Piroska Nagy outlined a programme of work to be taken (EBRD) meanwhile welcomed the initiative forward within PEFM that will aim to put being shown in the creation of the the task of restoring trust in finance at the European Banking Union. She described Charles Collyns (left) with Adam Bennett forefront of the global financial policy this as an overdue development and reform agenda. David Wright (Secretary argued that it would provide the necessary General of IOSCO) spoke on regulatory overarching framework for banks in issues relevant to securities markets, but emerging Europe, whose banking systems also offered his opinion of progress in are already, by virtue of extensive foreign financial sector reform more generally, ownership, well integrated with the including on the issue of ethics and financial system in Western Europe. She finance. Cyrus Ardalan (Vice Chairman of nevertheless observed that there is a need Barclays Bank) cautioned that the post- to ensure adequate representation in the crisis rush to tighten regulations and decision making bodies of the Banking increase capital requirements will not be Union for countries that were not yet part without a cost to the ability of banks to of the EU or Eurozone. David Vines (left) with Nick Morris

David Wright (left) and David Vines Piroska Nagy (left) with Adam Bennett Cyrus Ardalan

Page 6 PEFM in Focus Highlights of other PEFM events in 2014-15

In the Michaelmas term at Balliol College, a from the IMF, the EC, the ESM, finance and effects. Drawing on his book, Too Big to panel discussion entitled A Tale of Four academia, the debate was a lively one, Jail: How Prosecutors Compromise with Cities (Canberra, Ottawa, Washington and with sharply differing opinions, e.g., on the Corporations, Garrett discussed the opacity London) included Russell Kincaid (ex-IMF), merits of further austerity in Europe. It that accompanies “settlements”, by Tim Lane (Deputy Governor, Bank of was, as the Chair observed, a hard comparison with the court adjudications of Canada), David Vines (speaking as an discussion to sum up. corporate wrongdoing. He also noted the Australian), and Gene Frieda (Moore trend towards ever larger fines the size of Capital), with a contribution also from the which is sometimes hard to correlate with late Max Watson (the last seminar he the nature or severity of the attended before he died). This seminar misdemeanour. Instead, the size of fines was followed the next day by another often seems to be explained by the quality high-level panel, also at Balliol and chaired and skill (or lack thereof) of the defending by David Vines, examining progress in lawyers, if not entirely by the nationality of reforming financial regulation and macro- the defendant. European financial issues prudential policy. Chatham House were taken up again by Patrick Honohan independently hosted a PEFM seminar in (Governor of the Central bank of Ireland) Ajai Chopra London on macro-prudential polices in the revisiting the Irish crisis, and by Jeromin EU, with Russell Kincaid and Valerie Zettelmeyer (Ministry of Economic Affairs, Herzberg (Cabinet of Vice President Trinity term kicked off with a seminar by Germany) laying out the options for Kataninen, EC) as key speakers. Federico Fabrini (University of revitalizing public investment in Copenhagen) on economic governance in infrastructure. Finally, Jenny Corbett Europe, followed by Jazbec Boštjan (Australian National University) presented (Governor of Central Bank of Slovenia) a number of different ways of in which the who spoke on the relevance of macro- changes in financial integration in Asia prudential measures for Slovenia. The might be measured. theme of up-holding ethics in finance was continued by Peter Montagnon (Institute of Business Ethics), who argued for avoiding the knee jerk reaction of tighter regulation as a substitute for reforming Caroline Atkinson (right) with Kalypso Nicolaïdis the ethical values which lie at the heart of business decision making. Peter Taylor In Hilary term, Kevin James grappled with (Oxford Martin School) looked specifically the issue of how to measure the standard at ethical behaviour in the insurance of corporate governance in an objective market, which he argued was a neglected way, while Natalie Gold (Kings College, area of corporate governance. Brandon Patrick Honohan London) and Kevin Cardiff (European Court Garrett (University of Virginia, School of of Auditors) separately returned to the Law) elaborated on recent trends in official theme of ethics in finance from the sanctions against illegal, unethical or perspective of a philosopher and an Irish negligent corporate behaviour, and their practitioner respectively. Caroline Atkinson (National Security Advisor, White House) flew in from Washington to discuss the implications of financial globalization for US foreign policy. Ajai Chopra (ex-IMF and now Peterson Institute) provided insights on the Irish crisis and the Eurozone, while Klaus Regling (Managing Director, ESM) was the star witness in a high level conference on resolving the Eurozone crisis, chaired by Adam Bennett (Deputy Klaus Regling (centre) with participants at the Director, PEFM). With representatives high-level conference on the Eurozone crisis Jeromin Zettelmeyer

Issue 3 Page 7 PEFM Events 2014-15

Michaelmas Term Hilary Term

20 October Sustainable finance: Restoring confidence and 12 February Has financial globalization changed the context for stability in the financial system US international policy? Colin Mayer (Peter Moores Professor of Caroline Atkinson (Deputy Assistant to President Management Studies) Obama and Deputy National Security Advisor for 27 October Rebuilding trust in financial services International Economics, White House) Nicholas Morris (Balliol College, Oxford); David 26 February Crises, growth, and financial regulation: The case for Vines (Balliol College, Oxford) macro-conduct policy 3 November Is global financial reform finished? What pieces are Kevin James (Systemic Risk Centre, LSE); Dimitri missing? Tsomocos (Said Business School, Oxford) David Wright (Secretary General, International 5 March Ethical behaviour in banking Organisation of Securities Commissions (IOSCO); Natalie Gold (King’s College London) former Senior Member, St Antony's College, Oxford) 10 March Lessons from Ireland’s financial crisis 4 November A Tale of Four Cities: Round Table on the Prospects Ajai Chopra (Peterson Institute for International for the World Economy Economics, Washington, DC) Gene Frieda (More Capital); Russell Kincaid (St 11 March Has adjustment and recovery in the Euro Area been Antony’s College, Oxford); Timothy Lane (Bank of too slow? Canada; formerly IMF); David Vines (Balliol College, Klaus Regling (European Stability Mechanism) Oxford); Max Watson (St Antony’s College, Oxford) 5 November The coordination between macroprudential and Trinity Term macroeconomic policies: Issues for Europe for the 24 April Economic governance in Europe: Comparative next ten years paradoxes and constitutional challenges Valerie Herzberg (European Commission); Russell Federico Fabbrini (Faculty of Law, University of Kincaid (St Antony’s College, Oxford) Copenhagen) 6 November Financial and banking regulation, macroprudential In association with Centre for International Studies and monetary policy after the crisis (CIS), Law Faculty, and European Studies Centre (ESC) Panellists: Franco Bruni (Bocconi University, Milan); 5 May Non-standard monetary policy measures and their Leonardo Gambacorta (Bank of International effectiveness in Slovenia Settlements); Heinz Herrmann (Deutsche Boštjan Jazbec (Governor, Central Bank of Slovenia) Bundesbank); David Llewellyn (Loughborough In association with SEESOX University); James Talbot (Bank of England); 8 May Rebuilding trust in banks: Beyond regulation and Oreste Tristani (European Central Bank); John governance Vickers (All Soul’s College, Oxford); Richard Peter Montagnon (Director, Institute of Business Woolhouse (British Bankers’ Association) Ethics) 17 November Financial globalization—where next? 12 May The political economy of the Irish 'bailout' Charles Collyns (Chief Economist, Institute of Patrick Honohan (Governor, Central Bank of Ireland) International Finance (IIF), Washington DC; former 14 May Policy options for raising public investment in Assistant Secretary, US Treasury) Germany 24 November What challenges do the spillovers from EU Banking Jeromin Zettelmeyer (Director-General, Economic Union pose for emerging economies in Europe? Policy, Federal Ministry of Economic Affairs, Berlin, Piroska M Nagy (Director for Country Strategy and Germany) Policy, European Bank for Reconstruction and 18 May The insurance market: Ensuring performance, Development (EBRD)) reputation and trust 1 December Can the tightening of financial regulation be made Peter Taylor (Research Fellow, Oxford Martin School) consistent with a resumption in sustainable growth? 1 June Too big to jail: The evolution of corporate Cyrus Ardalan (Vice-Chairman, Barclays Bank) prosecutions in the United States 2 December Public and private ethics at a time of crisis Brandon Garrett (University of Virginia School of Law) Kevin Cardiff (Member the European Court of 15 June Mapping financial integration in East Asia Auditors for Ireland) Jenny Corbett (Australian National University)

Page 8 PEFM in Focus