When's the next crash?

Financial markets go up and down. And they usually fall faster than they rise.But when does normal financial market turbulence tip over into a systemic collapse? How should policymakers prepare and how should they react?In the latest New Money Review podcast, I interview Steven Kelly, associate director of research at the Yale Programme on Financial Stability. The programme’s mission is to create, disseminate and preserve knowledge about financial crises.In the podcast, we cover:What defines a systemic financial crisis?The common threads of financial crisesDeposits, short-term debt and bank runsThe historic scale of the 2023 US bank failuresHow safe is the global banking system?Safe assets, repo and US TreasuriesThe impact of rising interest rates on financial stabilityThe risks in stablecoinsSustainability, ESG and climate riskWhy current conditions are ‘stable but fragile’