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Zombie Lending, Fiscal Dominance and Financial Stability - Some Implications for the Post-Pandemic World

November 18, 2020



VIDEO Nov 18, 2020

  • How has the pandemic affected financial stability in advanced and emerging markets? What do the stabilization policies adopted during the pandemic imply for the post-pandemic financial sectors? Are there lessons we can learn from the outcomes of the last decade following the global financial crisis? Have initial conditions in developed economies started resembling those of emerging markets in many cases?

    Professor Viral V. Acharya will attempt to answer several of these questions through the lens of zombie lending by under-capitalized banks and its implications for economic growth, inflation, and financial stability. He will also draw upon the implications of fiscal dominance for monetary policy and bank regulation based on his recently released book "Quest for Restoring Financial Stability in India".

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    Viral V. Acharya

    C.V. Starr Professor of Economics, Department of Finance, New York University Stern School of Business (NYU-Stern)

    Viral V. Acharya is the C.V. Starr Professor of Economics in the Department of Finance at New York University Stern School of Business (NYU-Stern) and an Academic Advisor to the Federal Reserve Banks of New York and Philadelphia. Viral was a Deputy Governor at the Reserve Bank of India (RBI) during 23rd January 2017 to 23rd July 2019 in charge of Monetary Policy, Financial Markets, Financial Stability, and Research. His speeches while at the RBI were released in July 2020 in the form of a book titled “Quest for Restoring Financial Stability in India”, with a new introductory chapter “Fiscal Dominance: A Theory of Everything in India”.


    Thorsten Beck

    Professor of Banking and Finance, Bayes Business School (formerly Cass Business School)

    Thorsten Beck is professor of banking and finance at Bayes Business School (formerly Cass Business School) in London. He is also a research fellow of the Centre for Economic Policy Research (CEPR) and the CESifo. He was professor of economics from 2008 to 2014 at Tilburg University and the founding chair of the European Banking Center from 2008 to 2013. Previously he worked in the research department of the World Bank and has also worked as consultant for – among others - the European Central Bank, the Bank of England, the BIS, the IMF, the European Commission, and the German Development Corporation.


    Mario Guadamillas

    Practice Manager, Finance, Competitiveness and Innovation Global Practice, Europe and Central Asia Region, World Bank

    Mario Guadamillas is currently a manager in the Finance, Competitiveness & Innovation Global Practice for Europe and Central Asia (ECA) region responsible for projects on a broad range of financial and private sector areas. Before he was a global manager coordinating the joint IMF-WB Financial Sector Assessment Program (FSAP), the WB participation in the Financial Stability Board (FSB) and the assistance to countries in the banking regulation and supervisory area. Mario has numerous publications on financial sector issues, notably on financial infrastructure.


  • Date: November 18, 2020, 10:00AM – 11:30AM EST
  • Chair: Asli Demirgüç-Kunt, Chief Economist, Europe and Central Asia, World Bank
  • Venue: YouTube Live Streaming