SUERF Policy Note - Artificial intelligence (AI) can precipitate and

Here one finds the rationale for the re-imposition of financial market regulations after 2009 (following the wave of deregulation that began in the City of London in the 1980s and continued through similar measures in the USA), the introduction of macroprudential measures aimed at limiting excessive lending, financial flows, and requiring banks to hold higher capital and liquidity reserves. [...] This was seen in the United Kingdom in 2022 after misguided decisions by the Truss government, which affected the stability of the pensions system; it was also seen in the United States with the fall of Silicon Valley Bank and other turbulences in the banking system, which compelled the Fed to intervene through new lines of financial assistance and revision of regulations. [...] And Greenspan himself, in congressional hearings on the causes of the financial crisis, in August 2008, noted that a wrong paradigm dominated the Fed's monetary policy; The very same Fed, which, by the way, as the issuer of the world's main reserve currency, facilitated the US government to consistently run large budget deficits. [...] www.suerf.org/publications/ SUERF Policy Note No 348 7 Artificial intelligence (AI) can precipitate and exacerbate financial crises? About the author Daniel Daianu is President of the Romanian Fiscal Council and professor of economics at the National School of Political and Administrative Studies in Bucharest; he is a member of the Romanian Academy, a former member of the Board of the National Ban. [...] Natacha Valla discussion and understanding of financial markets and institutions, the The views expressed are those of the monetary economy, the conduct of author(s) and not necessarily those of SUERF Secretariat regulation, supervision and monetary the institution(s) the author(s) is/are c/o OeNB policy.