The way in which financial markets and their participants affect the price of securities is a subject of contention. Some commentators suggest that relatively new, high-frequency traders in equity markets, or speculators in commodity markets, have boosted liquidity and market efficiency. Others argue that they increase volatility and risk. This dichotomy has led to fierce policy debate regarding the appropriate financial regulatory approach at national and international levels.
Decisions on financial policy require expertise in both finance and econometrics. Financial analysis requires computational methods and the handling of large-scale datasets to statistically model returns, volatility, higher moments and generate forecasts.
Our members have worked in collaboration on these issues with researchers and policy makers at a number of external organisations, including the Bank of England, the Bank of Italy and the Bank of Portugal. The centre also works closely with industry; one of our current postgraduate students works for Oxford Economics, a highly respected private sector consultancy providing global economic forecasting, and is pursuing a PhD within the centre. Please visit our people page to view our full list of members.