The SAFE Policy Center and the Center for Financial Studies organized a policy web seminar on
The Resilient Society: Prosperity in an Uncertain Post-Covid World
Markus Brunnermeier (Princeton University)
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0:00:27 Introduction: Jan Pieter Krahnen (SAFE and Goethe University)
0:11:02 Presentation: Markus Brunnermeier (Princeton University)
0:38:15 Discussant: Sir Paul Tucker (Harvard University)
0:48:07 Discussion
1:17:39 Concluding remarks: Otmar Issing (CFS)
Moderation: Rainer Klump (CFS and Goethe University)
Covid has alerted us to a new reality. Individually and as a society, we face new large shocks. Resilience is a key concept. It is about the ability to bounce back after a shock, not to withstand shocks like robustness and not about avoiding any risks. Robustness works until it doesn't. Risk avoidance closes opportunity.
Resilience management highlights the dangers of traps, adverse feedback loops, tipping points, and the volatility paradox. Not being exposed to some risks worsens the ability to manage shocks. In finance, extra capital buffers foster resilience, while debt overhang and risk avoidance stifle economic growth and amplify macro-shocks.
In his new book for policymakers, business leaders, and engaged citizens, Princeton Professor Markus Brunnermeier argues that building resilience and investing in mechanisms for bouncing back is the only way to protect our social and economic institutions from climate change, cyberattacks, and other threats.
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www.safe-frankfurt.de
www.ifk-cfs.de
