The Role of Crises in Shaping Financial Systems (Banking, Money and International Finance)

The Role of Crises in Shaping Financial Systems: From the Global Financial Crisis to COVID-19 underscores the role of crises as turning points for the financial sector and its interactions with the real economy. It sheds new light on the financial industry through the lens of three recent crises – the global financial crisis, the sovereign debt crisis, and the COVID-19 pandemic. The book provides in-depth insight into the financial systems in European Economic Area countries, accentuating the role of crises in shaping the condition and development of the financial arena. The authors pay special attention to the differences between “old” and “new” Europe, i.e. countries that joined the EU in 2004 or later. It explores the implications of recent turbulences for financial institutions, financial markets, and public finance, and their relationship with the economy. The book examines low or negative interest rates, non-standard monetary policy, fiscal stimulus, dense safety nets, regulatory inflation, weak profitability of the financial sector, and the sovereign-bank nexus. Post-crisis developments are assessed, comprehensively and empirically, from both macro- and microeconomic perspectives to help readers understand the nature of policy measures and their socio-economic implications.

The authors outline their predictions for the future of financial systems, focusing on the structural changes and legacy of the COVID-19 crisis and global financial interlinkages.

The book adopts both theoretical and practical approaches to explore the key issues and, as such, will appeal to academics and students of financial economics and international finance, as well as policymakers and financial regulators.

Małgorzata Iwanicz-Drozdowska is a Full Professor of Economics and Finance and head of the Financial System Department at SGH Warsaw School of Economics, Poland.

Elżbieta Malinowska-Misiąg is an Assistant Professor at the Financial System Department, SGH Warsaw School of Economics, Poland.

Piotr Mielus is an Associate Professor of Economics and Finance at SGH Warsaw School of Economics, Poland.

Paweł Smaga is an Associate Professor at the Financial System Department, SGH Warsaw School of Economics, Poland.

Bartosz Witkowski is a Full Professor of Economics and Head of the Institute of Econometrics at SGH Warsaw School of Economics, Poland.