The Resilient Society: Prosperity in an Uncertain Post-Covid World

21 September 2021
16:00  - 17:30

Markus Brunnermeier, Edwards S. Sanford Professor at Princeton University and director of Princeton's Bendheim Center for Finance

 

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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 of 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 stifles economic growth and amplifies 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.

 

Introduction:
Jan Pieter Krahnen, SAFE-Director and Goethe University

Discussant:
Sir Paul Tucker, Chair of the Systemic Risk Council and Havard University

Concluding remarks:
Otmar Issing, CFS-President

Moderation:
Rainer Klump, CFS-Director and Goethe University

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