It is a generally accepted view that financial innovation has both positive and negative consequences on financial stability. But there are very different visions on financial innovation’s net effects. Nobel laureates Robert Merton and Merton Miller are among the most influential supporters of the view that positive effects dominate. On the other hand, policymakers and academic researchers have identified financial innovation as one key factor behind the current financial crisis. In discussions on the future of the financial landscape, the issue of the welfare effects of financial innovation has therefore come to play a prominent role.
The implications of financial innovation are a topic that is close to Nout Wellink’s interests and experiences as a central banker. On 10–11 November 2011, a conference on this theme was held as a way to pay tribute to Nout Wellink’s long-standing contributions to the central banking community. The conference brought together policymakers who are playing a prominent role in the debate and influential academics.
For the conference program and the individual contributions, click here.