Ban Publishes Research Paper in JCMS


Cornel Ban, Assistant Professor of International Relations at the Frederick S. Pardee School of Global Studies at Boston University, published an article in the Journal of Common Market Studies (JCMS).

Ban’s article, which he co-wrote with Daniela Gabor of the University of the West of England, is titled Banking on Bonds: The New Links Between States and Markets” (DOI: 10.1111/jcms.12309). It was released on Oct. 12.

From the abstract of the article:

This article examines a neglected structural transformation in European finance: the growing importance of government debt as collateral for Europe’s repo markets, where banks borrow cash against collateral. Seduced by the promises of repo market-driven financial integration, the EU institutions and Member States encouraged private finance to generate its own architecture for the European repo market in the early years of the euro, sidelining known problems about systemic fragilities. These fragilities materialized after Lehman Brothers’ collapse and were exacerbated by the ECB’s collateral policies. The European sovereign debt crisis shows that governments, just like private asset issuers, can rapidly become vulnerable to repo pro-cyclicality and collateral crises.

You can read the entire article here.

Ban is a Co-Director of the Global Economic Governance Initiative, an affiliated thematic center of the Pardee School. Before joining the Pardee School in 2012, Ban was a postdoctoral fellow at the Watson Institute for International Studies at Brown University and served as deputy director of Development Studies, an undergraduate specialization at the same academic institution. Learn more about him here.