Financial Stability in the UK Economy (Financial Economics)

In these recording of our recent synoptic revision webinar on Financial Economics we look at why maintaining financial stability has become increasingly important for UK policy-makers in the aftermath of the Great Recession that followed the Global Financial Crisis. We have broken the webinar content into four short videos below.

Financial instability brings economic and social costs and the legacy of a financial crisis can take many years to fully work through.

Video 1

The importance of financial stability

Video 2

Financial Risks for the UK economy in 2018

This video covers some of the risks to financial instability in the UK economy in 2018. These include high levels of household debt, a UK banking system exposed to global economic uncertainty, the risk of a correction to share prices and also uncertainties surrounding Brexit and the challenge of continuing to finance a large current account deficit.

Video 3

Minsky and Financial Instability

This short video recaps the ideas behind Minsky's Financial Instability Hypothesis and considers the circumstances in which commercial banks can go bust.

Video 4

Financial Regulation in the UK - 2018 Update

In this video we look at examples of how the regulators in the UK have attempted to reduce the risks of financial instability causing economic damage. This includes requiring the banks to hold larger capital reserves and also subjecting commercial banks to stringent stress tests to see if they can cope with really bad economic events both in the UK and overseas.