Professor Sheri Markose to give Keynote talk at the Reserve Bank of India College of Supervisors Annual Conference on Financial Resilience in Mumbai India
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Sheri Markose, Professor of Economics at the University of Essex will give a Keynote Talk in Mumbai at the Reserve Bank of India on Central Bank Digital Currency (CBDC) – Implications for Financial Resilience. Sheri will be joined by the Governor of the Reserve Bank of India Shaktikanta Das who will give the Inaugural Address; Marina Moretti , Deputy Director of the Monetary & Capital Markets of the International Monetary Fund from Washington DC; Fernando Restoy, Chair of Financial Stability Institute, Bank of International Settlements, Switzerland; and Paul Fisher, Former Deputy Head of Prudential Regulation Authority of the Bank of England and others.
Sheri is a Member of the Central Bank Digital Currency Academic Advisory Group of the Bank of England and HM Treasury.
Sheri was a Senior Consultant from 2011-2014 to the Reserve Bank of India Financial Stability Unit when it was first set up in 2011.
She actively champions the need to move away from the mainstream market price based systemic risk measures, which have been found to be ‘paradoxical’ and underestimate risk in the run up to a financial crisis. In 2011-2014, she helped digitally map the Indian Financial System using granular data of bilateral liabilities between all major financial institutions in India using network methods. It was a first of its kind. She was able to detect a Northern Rock situation building up in India in 2011 when one bank, not one of the usual suspects, was gaining market share by excessively borrowing on the interbank market and posing a threat to other banks. For this Sheri used a Google page rank style network metric. Markose says : “Without granular data driven large scale digital maps of this kind, it is hard to detect such threats to the financial system.”
Following the pioneering Masters and PhD curricula on computational data driven Agent based models that Markose set up as Founding Director of Centre for Computational Finance and Economic Agents (CCFEA), Markose is developing a population scale agent based model for UK CBDC adoption tracking the payments behaviour of 52 million UK adults with 75% of payments being routed through the banking system. Sheri says investing in such models that can digitally track payment flows are necessary to assess quantitatively how best to ‘seed’ the system with CBDC for it to have the best chance for adoption and also what systemic risks will follow. Highly aggregated DSGE macro-economic models cannot address this problem.