Finance and Economy - The Role of the State
The pivotal role finance plays in the
economy of the country will come under scrutiny in a University of Leicester Inaugural
Lecture on Tuesday 19 November 2002 at 5.30 pm.
Professor Panicos O Demetriades,
Professor of Financial Economics and Head of the Department of Economics at the
University, will speak on Financial Systems and Economic Performance: The Role
of the State.
While a stable, well-functioning,
financial system can contribute positively to investment, economic growth and
employment, a poorly functioning financial system can waste resources,
discourage saving and encourage speculation, resulting in under-investment and a
misallocation of scarce resources.
Recent financial crises have vividly
demonstrated how large the adverse effects of malfunctioning financial systems
can be, not only for the countries affected but also for the rest of the world
Professor Demetriades commented: “It is
widely accepted that the state can play a critical role in ensuring financial
stability, even though views on the extent and nature of its involvement have
varied considerably across countries and over time.
“The traditional neo-liberal approach
to finance, which advocates financial liberalisation without paying adequate
attention to financial market imperfections, is now commonly believed to have
been flawed and is considered responsible for many of the financial crises
observed in the last three decades.
“The New Keynesian view of finance,
which recognises the abundance and severity of market failures in the financial
system, is believed to provide a more appropriate framework for thinking about
government policy towards finance.
“An important policy implication of
this approach is that the destabilising effects of financial financial (and
other) market failures are sufficiently strong.”
Professor Demetriades worked at the
Central Bank of Cyprus, before coming to the UK as a Lecturer and later Reader
in Economics at Keele University. He
moved to South Bank University as Professor of Financial Economics, a post he
has subsequently held at the University of Leicester since 2000.
He has also been consultant to the World
Bank in the Office of the former Chief Economist and Senior Vice-President
(Development Economics), Joseph Stiglitz, and Speaker at the World Bank
Institute, where he gave seminars at New Delhi, Abidjan and Beirut.
He has published numerous articles on
monetary and financial economics in leading academic journals, including Review
of Economics and Statistics, The Economic
Journal, Journal of International
Economics, Journal of Development
Economics, Journal of Money,
Credit and Banking.
His research has attracted major funding
from the Economic and Social Research Council, the Leverhulme Trust and the
Nuffield Foundation. His current research
is on State Banks, Institutions and Financial Development.
His monograph, Financial Systems and Economic Performance, is shortly to
be published by Cambridge University Press.
Professor Demetriades’ Inaugural
Lecture, entitled Financial Systems and Economic Performance:
The Role of the State, will take place on Tuesday 19 November 2002 at
5.30 pm in Lecture Theatre 1 in the Ken Edwards Building, at the University of
Leicester main campus, University Road, Leicester. It is open to the public and free of charge.
Note to editors:
Further information is available from Professor Panicos O Demetriades,
Professor of Financial Economics and Head of Department of Economics, University
of Leicester, telephone 0116 252 2835, facsimile 0116 252 2908, email firstname.lastname@example.org
This document has been approved by the head of department or section.