Prasanna Gai is Professor of International Economics in the Crawford School and a Senior Research Associate of the Financial Markets Group, London School of Economics (LSE), and the Centre for Applied Macroeconomics (CAMA). He has been academic adviser on financial stability matters to the Bank of England, the Bank of Canada, and the Reserve Bank of New Zealand. Prior to joining Crawford, he was Senior Adviser at the Bank of England, most recently responsible for directing the Bank’s research work on systemic risk and editing the Financial Stability Review. Prasanna has also been a Fellow in Economics at the Research School of Pacific and Asian Studies, ANU, a visiting lecturer at the University of Oxford, an academic visitor to the Bank of International Settlements, and a visiting fellow at the Hong Kong Institute of Monetary Research.

Research interests/expertise

• Systemic risk and financial crises
• International monetary economics
• Informational and financial frictions in macroeconomics
• Network models

Current Projects

• Systemic Risk in Modern Financial Systems (book in progress for Oxford University Press)
• Liquidity Hoarding, Network Externalities, and Interbank Market Collapse
• Designing macroprudential policy

Key Publications

• Towards a framework for quantifying systemic stability, International Journal of Central Banking, September, 2009 (with P Alessandri, S Kapadia, N Mora and C Puhr)
• Financial innovation, macroeconomic stability and systemic crises, Economic Journal, 118, 401-426, 2008 (with S Kapadia, A Perez and S Millard).
• Private sector involvement and international financial crises – an analytical perspective, foreword by Franklin Allen, Oxford University Press, 2005 (with M Chui).
• Crisis costs and debtor discipline: the efficacy of public policy in sovereign debt crises, Journal of International Economics, 62, 245-262, 2004 (lead article, with H Shin and S Hayes).

Teaching Resources

• Guidance for prospective PhD students