The shifts and the shocks
Speaking at Schroders' Secular Market Forum in the winter of 2014, the Financial Times' Martin Wolf discussed what we've learned - and have still to learn - from the financial crisis.
In his latest book, Martin Wolf explores the way in which the financial and economic crises – which struck high income economies after August 2007 – have altered our world. Discussing the book in Schroders’ head office in the winter of 2014, Mr Wolf provided a summary of the positive changes made, but also the worrying number of issues yet to be fully addressed.
Wolf questions how different the world really is now, and asks whether our "new orthodoxy" can protect global financial markets from future crises. If it is possible, Wolf says, stability will be achieved through embracing "macro prudential" policy, which better recognises the relationship between markets and the economies they operate in. What Wolf has found is that if the financial sector, at a global level, is more structurally sound and factors in the world it lives in, the impact of the inevitable ‘shifts and shocks’ need not be so painful.