Predicting Financial Crises - City University London researchers work with the EU
Following the spate of financial crises that have rocked the world, researchers from City University London are working with the European Union under the 7th Framework Programme, to investigate how financial forecasting can be improved.
The Forecasting Financial Crises is financed under the Future and Emerging Technologies Open Schemeand is being conducted by an interdisciplinary consortium of economists, computer scientists and physicists and aims to develop a system which will inform policy makers and regulators by enabling them to better predict global financial activity.
The grant for the entire project is 1.8 million Euros and will involve City researchers working alongside institutions including Consiglio Nazionale Delle Richerch (Italy), Eidgenössische Technische Hochschule Zürich (Switzerland), the European Central Bank (Germany), Fundacio Barcelona Media Universitat Pompeu Fabra (Spain), University of Oxford (UK) and Universita Politecnica Delle Marche (Italy).
Economics expert, Professor Giulia Iori, from City University London, says that following the stream of financial crises, starting from the Asian crisis of 1997 and culminating in the global meltdown of 2007, there is a growing view that the current frameworks are inadequate for understanding, forecasting and mitigating global financial risk.
"This project has a very important practical application. It aims to provide policy makers and regulators as well as the financial industry, with a tool which will enable them to monitor and forecast financial crises and interactively simulate and anticipate future risk scenarios."
Professor Giulia Iori, City University London