Adrian’s presentation focuses on theories of financial crisis. He and his co-authors, Hyun Song Shin and John Kiff, theorize that the financial crisis was a product of the leverage cycle. He notes that leverage has declined since the crisis even amidst an extended economic expansion and an era of easy credit. Adrian believes that new regulations have tamed the leverage cycle and created a safer system, albeit with some unintended consequences that are nevertheless acceptable in terms of magnitude.

A session from the 2008 Financial Crisis: A Ten-Year Review conference held on 8-9 November 2018 in New York.