Are index funds harmful for global financial stability?

Date

January 12, 2022, 9:00 AM to 10:00 AM EST
Virtual Event

Nicolas Véron (PIIE), Anusha Chari (University of North Carolina at Chapel Hill) and Alejandro Werner (PIIE)

Event Summary

Research by Anusha Chari and her coauthors suggests that the rise of internationally-focused mutual funds with passive investment strategies may exacerbate the "sudden stops" associated with abrupt changes in global investor risk appetite, with adverse impacts on emerging markets. We will discuss the possible implications for global financial stability.

Joining this episode of Financial Statements were:

HOST

Nicolas Véron
Senior Fellow, Peterson Institute for International Economics (PIIE)

GUESTS

  • Anusha Chari
    Professor of Economics and Finance, University of North Carolina at Chapel Hill
  • Alejandro Werner
    Founding Director, Georgetown Americas Institute; Nonresident Senior Fellow, PIIE

Video

Series

About This Series

Financial Statements is a biweekly virtual event series hosted by Nicolas Véron that explores changes in the world of finance, encompassing themes of financial services regulation, corporate finance and governance, systemic fragility and crises, and structural changes driving business and policy trends in the financial sector.