01 May 2013: Professor Markose to speak at annual conference of Banco Central do Brazil

Professor Sheri Markose

Professor Sheri Markose has been invited to speak at the XV Annual Conference of the Banco Central do Brazil on 16-17 May 2013 where leading central bankers and economists will address issues to do with the macro-economic models and tools that can help in making effective policy.

While in Rio she will be meeting with senior researchers of the Brazilian Central Bank to discuss the new operational approach in macro- policy that she have been pioneering at the University of Essex.

This approach, called agent based network models, is useful for the design of robust macro-prudential policy tools and also to visualize large financial sector data to reveal interconnections between financial agents. Her hosts have expressed interest in her complexity perspective in policy design.

Professor Markose says: "Since pioneering the postgraduate curriculum in economics and finance using agent-based modelling and a complexity perspective at CCFEA from about 2000, this has led me in very different directions than mainstream economics. Some of this has borne fruit in recent assignments I have had from central banks to help with developing large scale financial network models for systemic risk modelling."

Since 2011, Professor Markose has been leading a project at the Financial Stability Unit of the Reserve Bank of India to develop software and IT modelling tools using network analysis to digitally map their financial system. There it has been possible to test out some systemic risk analytics that have proven to be useful to detect potential threats to financial stability.

Sheri has received an invitation from the Basel Committee for Banking Supervision to provide guidance on a project aimed at assessing the macro-economic costs and benefits from the implementation of the reforms for the Over the Counter Derivatives (OTC). The Report from this project will feed into the forthcoming G10 meetings in Sept. 2013. This invitation has followed on from her IMF project and paper of November 2012 which was the first comprehensive empirical model for systemic risk from the global derivatives markets. (As of May 2013, it was in the top 10 most down loaded paper on SSRN in systemic risk.)

Markose, S.M, 2012 November, "Systemic Risk from Global Financial Derivatives: A Network Analysis of Contagion and Its Mitigation with Super-Spreader Tax " International Monetary Fund Working Paper No. 12/282, November 2012.